Enabling India to Lead the Circular Transformation

India is steadily emerging as a leader in the global circular economy discourse by integrating circularity into its growth strategy. With expanding industries and a growing population, India recognizes the importance of waste minimization, resource efficiency, and the promotion of recycling to ensure long-term environmental and economic resilience. Anchored in the principles and collaborative approaches of its previous editions, CII’s third edition of the National Circular Economy Framework aims to accelerate India’s transition to a circular economy while serving as a concise roadmap for its implementation and support the development of innovative, circular business models.

The New Framework

NCEF 3 marks a significant evolutionary step in India’s circular economy journey by expanding its scope, deepening its analysis, and introducing robust implementation mechanisms for 20 priority materials. These materials build on those identified in previous editions and include plastics, construction materials, electrical and electronic goods, mixed municipal waste, e-waste, textiles, solid waste, batteries, hazardous waste, tyres and rubber, scrap materials, and scrap metals.

The new edition further accelerates this momentum by incorporating new and emerging sectors that are critical to India’s resource security and sustainability. These include used cooking oil, catalytic converters, paper and cardboard, and absorbent hygiene products. These materials reflect India’s response to rapid shifts in consumption patterns, regulatory developments, and technological advancements.

Used Cooking Oil (UCO) in India primarily originates from commercial kitchens, food processing units, the HoReCa sector (hotels, restaurants, and catering), and households. Currently, the collection rate of UCO is less than 10%, and nearly 60% of it illegally re-enters the food chain. The framework highlights the need for policy interventions not only for UCO collection but also for biodiesel blending, Sustainable Aviation Fuel (SAF) production from UCO, and infrastructure development. By building regional hubs for UCO collection, strengthening capacity building, driving behavioural change, and funding R&D initiatives, India can achieve the proposed targets of a 30% UCO collection rate, 5% biodiesel blending, and 5% SAF production from UCO by 2030.

Catalytic converters used in vehicles and industrial emission systems contain Platinum Group Metals (PGMs) that catalyse the conversion of harmful exhaust pollutants into less harmful substances such as carbon dioxide, nitrogen, and water vapour. The framework envisions the establishment of a self-reliant, resource-efficient, and environmentally responsible catalytic converter value chain that minimizes dependence on primary PGM imports and promotes the domestic recovery and reuse of these metals. This approach will contribute to India’s clean mobility and emission control commitments.

For the paper, cardboard, and packaging sector, the framework emphasizes the need to achieve self-reliance in raw material sourcing and to transition fully to a circular economy model through responsible consumption and sustainable resource management. This transition involves establishing a technology-enabled, quality-assured, collaborative supply chain that enables the industry to significantly improve national recovery rates while reducing its environmental footprint.

The framework also envisions circular economy progress in sanitary waste management by transforming it into a resource-efficient system where waste is minimized, segregated at source, and managed through a

coordinated value chain. This approach aims to ensure zero unsafe disposal while maximizing resource and energy recovery.

Key Strategies for the Implementation of NCEF

The NCEF seeks to provide a structured pathway for India’s transition from a linear “take-make-dispose” model to a regenerative economic system that conserves resources, reduces waste, and enhances competitiveness. Effective implementation is contingent upon building a strong institutional architecture supported by policy reforms, market incentives, innovation, partnerships, capacity building, and governance frameworks.

A robust policy and regulatory ecosystem forms the foundation of a successful circular economy transition. This requires the government to integrate measures such as Extended Producer Responsibility (EPR), eco-design standards, product take-back systems, and minimum recycled content requirements into national missions, industrial policies, and environmental regulations. Economic incentives should be offered to attract investment and foster innovation in circular solutions. However, without awareness and behavioural change, circular economy adoption cannot be achieved at scale. Embedding circular economy principles in school and university curricula can help drive long-term behavioural shifts and cultivate a future workforce skilled in sustainable design and resource management.

Public–private partnerships (PPPs) play a critical role in mobilizing investment, expertise, and technology for circular economy projects. Collaborative governance among public institutions, private enterprises, and financial organizations can strengthen accountability and ensure that circular initiatives deliver measurable economic and environmental outcomes.

The establishment of a national circular economy knowledge network, coupled with focused capacity-building initiatives, can strengthen implementation capabilities while fostering continuous improvement through knowledge exchange and skill development. Furthermore, a dedicated institutional mechanism is required to align national, state, and local efforts, oversee implementation, monitor data, and enable effective inter-ministerial coordination.

The Road Ahead

The framework represents India’s most ambitious and comprehensive circular economy roadmap to date and marks a strategic inflection point in the country’s circular journey. With expanded material coverage, rigorous sectoral baseline analysis, an advanced implementation roadmap, and clearly defined accountability structures, it provides the granular tools needed to operationalize circularity within India’s complex socio-economic landscape.

Aligned with international commitments and national missions such as Lifestyle for Environment (LiFE) and Atmanirbhar Bharat, the framework positions India to lead the global circular transformation and secure a resilient future for present and future generations.