BTL 796 - Circular Economy

The Banking Tutor’s Lessons

BTL 796                                                                   21-06-2025

Circular Economy

A circular economy is an economic system aimed at minimizing waste and pollution by keeping products and materials in use for as long as possible through strategies like Reuse, Recycling, and Refurbishment. 

It contrasts with the traditional linear "take-make-dispose" model by promoting resource efficiency and sustainability. 

It is a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible. 

It is a departure from the traditional, linear economic model, which is based on a take-make-consume-throw away pattern. 

Reduce: Minimizing the amount of materials used in the first place. 

Reuse: Utilizing products or components multiple times before disposal. 

Recycle: Processing used materials into new products. 

Refurbish: Restoring used products to a like-new condition. 

Recover: Extracting energy or materials from waste that cannot be recycled or reused. 

Repair: Fixing damaged products to extend their lifespan. 

Benefits of a Circular Economy: 

Environmental Protection: Reduced waste, pollution, and greenhouse gas emissions.

Economic Growth: Opportunities for new businesses, job creation, and resource efficiency. 

Resource Security: Reduced reliance on finite natural resources. 

Social Equity: Increased access to affordable goods and services. 

Circular Economy in India: 

India’s Initiatives: Swachh Bharat Mission, GOBAR-Dhan Scheme, E-Waste Management Rules 2022, Mission LiFE etc. 

The concept aligns with India's Sustainable Development Goals (SDGs), particularly those related to responsible consumption and production. 

Challenges and Considerations: 

Infrastructure: Requires investments in recycling, waste management, and collection systems. 

Behavioural Change: Consumers and businesses need to adopt circular practices. 

Technological Advancements: Innovation is needed to develop circular solutions. 

Policy Frameworks: Clear regulations and incentives are needed to support the transition. 

Sekhar Pariti

+91 9440641014