Syllabus: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Context: Union Home Minister Amit Shah expressed confidence that circular economy model implementation will increase dairy farmers’ income by 20% over next five years across India.
More in News:
- Shah addressed cattle rearers at Sanadar village in Gujarat’s Vav-Tharad district during inauguration of Banas Dairy’s bio-CNG and fertilizer plant and milk powder plant ground-breaking ceremony.
- Minister praised Banas Dairy’s management for successfully developing circular economy model in dairy sector, generating extra income for farmers through biogas, fertilizer from cattle dung, and other means.
- Shah informed he brought several MPs to Banaskantha to understand Banas Dairy’s circular economy model; chairpersons and managing directors of major cooperative dairies will visit in January 2026.
- Banas Dairy is Asia’s largest dairy with turnover of ₹24,000 crore; Minister emphasized producing global demand products not made in India can help dairy farmers earn extra income.
- Circular economy model includes leather production from hides harvested from cattle dying naturally, alongside biogas and fertilizer production from cattle dung procured from farmers for comprehensive utilization.
- PM Modi created system wherein dairies will get required finance and technology to adopt circular economy model; Shah confident targets under ‘White Revolution 2.0’ initiative will be achieved through collective efforts.
- Minister praised women dairy farmers for contribution and efforts in strengthening dairy sector in arid region of Gujarat, acknowledging their vital role in cooperative movement’s success.
Circular Economy
- Meaning and Concept
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- A circular economy is an economic model designed to eliminate waste and pollution by keeping materials in continuous use through reuse, repair, refurbishment, and recycling.
- It contrasts with the linear “take–make–waste” system by closing material loops and reducing dependence on finite resources.
- The model aligns strongly with Sustainable Development Goals, especially responsible consumption, climate action, and sustainable industries.
- It helps decouple economic growth from resource depletion, thereby addressing climate change, biodiversity loss, and pollution.
- Core principles include eliminating waste by design, extending product lifecycles, and regenerating ecosystems by shifting to renewable energy.
- Interlinkages with Broader Frameworks
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- Closely aligned with Green Economy (resource conservation and low-carbon growth).
- Connects with Blue Economy, promoting sustainable use of marine resources and reducing ocean pollution.
- Influences India’s manufacturing, agriculture, and service sectors through sustainable production and consumption.
- Digital tools like AI and blockchain enhance traceability, e-waste tracking, and circular logistics.
- Seven Foundational Pillars
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- High-Value Material Cycles: Materials remain in high-value use with minimal mixing and shorter transportation.
- Biodiversity Protection: Avoids ecological damage, prioritising habitat conservation over resource extraction.
- Sustainable Water Use: Promotes conservation, wastewater nutrient recovery, and pollution-free water systems.
- Cultural & Social Preservation: Ensures governance that safeguards cultural well-being and social cohesion.
- Human Health Priority: Eliminates harmful substances and avoids unsafe practices like e-waste burning.
- Fair Use of Limited Resources: Maximises societal value—economic, ecological, and emotional—from scarce resources.
- Digital Technologies & Data: Using tech for tracking, optimizing, and enabling circular flows.
Key Benefits
- Environmental
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- Reduces raw material extraction by up to 32% by 2030.
- Circular strategies could cut global emissions by 39% by 2050.
- Sharp reduction in landfill and ocean waste.
- Economic
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- Remanufacturing can reduce production costs by 10–15%.
- Circular transition may generate 6–7 million jobs globally by 2030.
- New circular business models could add $4.5 trillion by 2030.
- Social
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- Offers affordable refurbished goods and improves consumer access.
- Cleaner environments reduce pollution-related health risks.
Barriers to Adoption
- Regulatory gaps, weak standardisation, outdated rules.
- Technological limitations in recycling innovation and traceability.
- Infrastructure deficits in reverse logistics and material recovery.
- Financial constraints, including high upfront investment.
- Organisational resistance and entrenched consumer habits.
Way Forward
- Implement statutory mandates for recycled material use and unified circular economy laws.
- Develop a simplified reporting system with fiscal incentives and EPR certificate trading.
- Align policies with industry partnerships for effective implementation.
- Increase R&D investment in recycling technologies and renewable-energy innovations.
- Promote technology-driven waste management and urban composting to enhance soil health.