Implementation of the closed-loop economy in Indian regions: State, challenges, and prospects
https://doi.org/10.35854/1998-1627-2025-12-1611-1619
Abstract
Aim. The work aimed to structure the key elements of Indian policy and practice in implementing closed-loop economy principles within the country’s strategic development, taking into account balanced economic growth and environmental sustainability.
Objectives. The work seeks to analyze the state of the closed-loop economy in India using examples from major sectors such as agriculture, manufacturing, and waste management; and to develop closed-loop economy development strategies, taking into account the country’s economic and environmental situation.
Methods. The author used a mixed-methods approach, combining a qualitative analysis of programme documents, case studies of successful development initiatives, and quantitative surveys of businesses and local governments. Data was collected in five regions with different economic and environmental conditions. Statistical tools and thematic analysis were used to interpret the results.
Results. The study revealed that some regions of India are lagging behind in the closed-loop economy development, nevertheless there are advanced waste management technologies, renewable energy resources integration, and resource application efficiency improvements, while there are still challenges related to infrastructure, insufficient awareness, and there are adjustment policy gaps, and financial constraints. However, the country has significant potential for growth, largely due to increased government support, technological developments, and public participation.
Conclusions. In India, the transition to a closed-loop economy in its regions is still in its infancy, meaning this process has limitless potential to promote sustainable development. A combination of effective policies, network support, and capacity-building programs can remove barriers to the rapid adoption of closed-loop economy principles across the country. Using its strengths and joining forces to ensure national resilience, India is poised to become a global leader in the closed-loop economy.
About the Author
Zabiullah ZabiRussian Federation
Postgraduate student, Peter the Great St. Petersburg Polytechnic University.
29B Politekhnicheskaya St., St. Petersburg 195251
Competing Interests:
None
References
1. Goswami D. Addressing the challenge of overexploitation of natural resources in pursuit of development. Sprin Journal of Arts, Humanities and Social Sciences. 2024;3(3):65-67. https://doi.org/10.55559/sjahss.v3i3.276
2. Raksha H.V. Conceptualizing Circular Economy — an orientation for sustainable development of the Indian economy. International Journal of Scientific Research in Engineering and Management. 2025;9(1):1-9.
3. Aroh K. Globalization, industralization and population growth the fundamental drivers of pollution in a given society (India). SSRN Electronic Journal. 2018. https://doi.org/10.2139/ssrn.3453740
4. Nudurupati S.S., et. al. Transforming sustainability of Indian small and medium-sized enterprises through circular economy adoption. Journal of Business Research. 2022;149:250-269. https://doi.org/10.1016/j.jbusres.2022.05.036
5. Kumar P., Datta S.K. Environmental degradation and economic growth: A longitudinal analysis across different income group countries. The Indian Economic Journal. 2024;72(1):72-89. https://doi.org/10.1177/00194662231199238
6. Ahmad M., et. al. Do rural-urban migration and industrial agglomeration mitigate the environmental degradation across China’s regional development levels? Sustainable Production and Consumption. 2021;27:679-697. https://doi.org/10.1016/j.spc.2021.01.038
7. Singh S., Yadav A. Interconnecting the environment with economic development of a nation. In: Singh P., et al., eds. Environmental sustainability and economy. Amsterdam: Elsevier; 2021:35-60. https://doi.org/10.1016/B978-0-12-822188-4.00003-8
8. Alex J.K., Arunkumar T.A. Western Ghats dilemma: Conservation vs livelihood. Ecology, Environment and Conservation. 2024;30(Suppl.):S22-S27. https://doi.org/10.53550/EEC.2024.v30i07s.005
9. Chenavaz R.Y., Dimitrov S. From waste to wealth: Policies to promote the circular economy. Journal of Cleaner Production. 2024;443:141086. https://doi.org/10.1016/j.jclepro.2024.141086
10. Kuniyal J.C. Solid waste management in the Himalayan trails and expedition summits. Journal of Sustainable Tourism. 2005;13(4):391-410. https://doi.org/10.1080/09669580508668564
11. Rai S., et. al. Sustainable solid waste management challenges in hill cities of developing countries: Insights from eastern Himalayan smart cities of Sikkim, India. Waste Management Bulletin. 2024;2(2): 1-18. https://doi.org/10.1016/j.wmb.2024.02.009
12. Kolathayar S., et al., eds. Resilient infrastructure: Select proceedings of VCDRR 2021. Singapore: Springer; 2022. 527 p. https://doi.org/10.1007/978-981-16-6978-1
13. Patel M., et. al. Crop residues management: A sustainable approach for rice and wheat production in Indo-Gangetic plains. International Journal of Research in Agronomy. 2024;7(6):24-32. https://doi.org/10.33545/2618060X.2024.v7.i6a.787
14. Boyd C.E., et. al. Achieving sustainable aquaculture: Historical and current perspectives and future needs and challenges. Journal of the World Aquaculture Society. 2020;51(3):578-633. https://doi.org/10.1111/jwas.12714
15. Gumte K., Mitra K. A circular economy approach toward managing e-waste in Indian Smart City. In: Gunasekaran A., Sharma J.K., Kar S., eds. Applications of operational research in business and industries. Singapore: Springer; 2023:273-294. (Lecture Notes in Operations Research). https://doi.org/10.1007/978-981-19-8012-1_18
16. Guo Y. Circular economy of waste electronic products based on Gompertz model. Process Integration and Optimization for Sustainability. 2025;9(2):667-679. https://doi.org/10.1007/s41660-024-00477-5
17. Thakur A., et. al. Solid waste management in Indian Himalayan Region: current scenario, resource recovery, and way forward for sustainable development. Frontiers in Energy Research. 2021;9:609229. https://doi.org/10.3389/fenrg.2021.609229
18. Bhatt I.D., Negi V.S., Rawal R.S. Promoting nature-based solution (NBS) through restoration of degraded landscapes in the Indian Himalayan region. In: Dhyani S., Gupta A., Karki M., eds Nature-based solutions for resilient ecosystems and societies. Singapore: Springer; 2020:197-211. (Disaster Resilience and Green Growth). https://doi.org/10.1007/978-981-15-4712-6_12
19. Selvaraj V.K., Subramanian J., Dutt S.S. Integrating circular economy principles in achieving net zero toward sustainable futures: India’s perspective. Materials Circular Economy. 2024;6(1):53. https://doi.org/10.1007/s42824-024-00144-7
20. Goyal S., Esposito M., Kapoor A. Circular economy business models in developing economies: Lessons from India on reduce, recycle, and reuse paradigms. Thunderbird International Business Review. 2016;60(5):729-740. https://doi.org/10.1002/tie.21883
21. Baruah N., Bora A., Gogoi N. Agricultural waste in circular economy: An Indian scenario. In: Singh P., ed. Emerging trends and techniques in biofuel production from agricultural waste. Singapore: Springer; 2024:15-42. (Clean Energy Production Technologies). https://doi.org/10.1007/978-981-99-8244-8_2
22. Hẹn P.M., Thành N.V., Công V.H. Circular economy approach in agricultural wastes management: A case study in Minh Chau commune, Ba Vi, Ha Noi. TNU Journal of Science and Technology. 2021;226(9):100-107. https://doi.org/10.34238/tnu-jst.4335
23. Bherwani H., et. al. Application of circular economy framework for reducing the impacts of climate change: A case study from India on the evaluation of carbon and materials footprint nexus. Energy Nexus. 2022;5:100047. https://doi.org/10.1016/j.nexus.2022.100047
24. Niwalkar A., et. al. Circular economy based approach for green energy transitions and climate change benefits. Proceedings of the Indian National Science Academy. 2023;89(1):37-50. https://doi.org/10.1007/s43538-022-00137-7
25. Kudtarkar S.G., Srivalli B. A circular supply chain in E-Commerce businesses in India. In: Ramakrishna Y., Wahab S.N. Handbook of research on designing sustainable supply chains to achieve a circular economy. Hershey, PA: IGI Global; 2023:82-96. https://doi.org/10.4018/978-1-6684-7664-2.ch005
26. Singh R., Sarna B. Global South perspective on circular economy — the case of India. In: Proc. 7th FEB Int. sci. conf.: Strengthening resilience by sustainable economy and business — towards the SDGs. Mariboru: Univerza v Mariboru; 2023:3. https://doi.org/10.18690/um.epf.3.2023.3
Review
For citations:
Zabi Z. Implementation of the closed-loop economy in Indian regions: State, challenges, and prospects. Economics and Management. 2025;31(12):1611-1619. https://doi.org/10.35854/1998-1627-2025-12-1611-1619
JATS XML

















