NITI Aayog CEO Amitabh Kant threw his weight behind India developing its own circular economy ecosystem, quoting estimates to say it could generate more than one crore jobs. There are calls for circular economy to be included in the school curricula, while industry body FICCI has released a study paper on how the circular economy could work for the plastics industry. So, what exactly does this seemingly-new buzzword mean?
Circular economy, also referred to as 'circularity', is a way of managing resources so that they are used to the maximum and once the life cycle is complete, is refurbished or recycled, in whole or in part, and reused. You might say, we Indians, naturally spendthrift and value conscious, do not need to be taught this but in this case, we are referring to applying these principles on an industrial scale. This 'regenerative' approach contrasts directly with the conventional, linear model of capitalist economy, which works on the model of 'make, use and dispose.'
So why is the Indian government, NITI Aayog in particular, so excited about applying the principles of circularity on Indian economy? To start with, it is the great job factor. According to Kant, a full application of circular economy tenets to Indian manufacturing and economy could mean as much as 1.4 crore jobs in the next five to seven years. It could also spawn lakhs of small businesses, too.
Kant, who was speaking at a symposium on Circular Economy organised by FICCI in the national capital, also pointed out how the rising global population, slated to hit 9.7 billion by 2050 would have at least 3 billion people in the middle-class consumption level. “This would require 71 per cent more resources per capita, thereby raising total mineral and material demand from 50 billion tonnes in 2014 to 130 billion tonnes in 2050.”
Simply put, planet earth may simply struggle to provide resources for all that many people. The writing on the wall is clear: sustainable development and resource circularity is the need of the hour.
Kant added that if the ‘End of Life Vehicle’ policy with dated emission standards was implemented, then over 22 million vehicles will be off the road in two years time. This would include 80 per cent two-wheelers, 14 per cent cars, and 3 per cent each of three-wheelers and commercial vehicles. “End of Life Vehicles present huge business opportunity for growth, wealth creation and jobs,” he said.
From older automobiles to plastics (plastic majors came together to form an alliance against waste earlier this year) to partnerships with non-governmental organisations and environmental groups, Circular economy is slated to be a buzzword in the coming years, as businesses adapt and evolve in an age of depleting resources.