Circular Economy Key To Achieving Viksit Bharat 2047: NITI Aayog

India’s vision of Viksit Bharat by 2047 is closely linked to the country’s attempt to shift to a circular economy, according to the Government’s think tank NITI Aayog, which on January 22 published three reports focused on End-of-Life Vehicles (ELVs), waste tyres, e-waste, and lithium-ion batteries.

A circular economy focuses on reducing waste and maximising the value of resources by keeping products, materials and components in use for as long as possible through reuse, recycling and recovery.

The reports were released at the International Material Recycling Conference (IMRC) organised by the Material Recycling Association of India (MRAI) in Jaipur. They examine key challenges in India’s circular economy ecosystem and outline recommendations

for infrastructure development, sector formalisation, strengthening the Extended Producer Responsibility (EPR) framework, and unlocking economic value from waste streams.

NITI Aayog said that if India has to shift to a circular economy, it will require large-scale deployment of clean energy systems and sustainable material use. Electronic and electrical equipment, lithium-ion batteries and automobiles are expected to play a critical role in driving digitalisation, mobility and India’s broader energy transition.

India’s electric vehicle (EV) market has expanded rapidly, with annual sales rising from about 50,000 units in 2016 to 2.08 million units in 2024. The government aims to raise EVs’ share in total vehicle sales to 30 percent by 2030. As a result, demand for lithium-ion batteries is projected to increase sharply from 29 GWh in 2025 to 248 GWh by 2035.

At the same time, the volume of end-of-life vehicles in India is expected to rise from 23 million in 2025 to nearly 50 million by 2030, while e-waste generation is projected to more than double from 6.19 million metric tonnes in 2024 to 14 million metric tonnes by 2030.

NITI Aayog said these trends make the adoption of a circular economy model a strategic imperative rather than just an environmental requirement.