Abstract
The circular economy is a term growing in popularity as more minds turn their direction towards more sustainable methods of production. India is a developing country, and it's the second most populated country in the world. As a result, it is useful to use a sustainable supply chain-based economy. The circular economy is being used as a lens to weigh the short-term returns alongside the longer-term social and environmental value. The circular economy is giving businesses and cities that commit to it a chance to gain a first-mover advantage to attract funds and investments. India will benefit in many ways from sustainable supply chains to achieve a truly circular economy. This book chapter will be discussing India's current situation with the economic system, the benefits of moving into a circular economy, what designs of sustainable supply chains can be utilized in creating a circular economy, and what challenges India may face in the future in both creating a circular economy or not moving in that direction.
TopThe Concept Of Circular Economy
According to the EPA (2022), a circular economy is an industrial system of economy whose aim is to regenerate or restore nature. Circular economy is governed by the frameworks that advocate the transition of clean renewable energy and materials and thereby decouples economic activity from finite resources consumption. Circular economy is poised by many scientists as a resilient system that is friendly to businesses, environment and human systems. Therefore, the circular economy offers a solution framework to Indian economy by tackling global issues such as pollution, loss of biodiversity and climate change. The main point in utilizing this system is to keep products, equipment, and infrastructure in use for longer periods of time, which makes these critical resources more valuable (Cunnane, 2021).
There is a need to transform sociotechnical to offset key environmental challenges such as pollution, resource depletion, loss to biodiversity, and overutilization of land, all which are a threat to the ability of the earth’s ecosystem to sustain life forms (Rockström et al., 2009; Jackson, 2009; WWF, 2014). The concept of circular economy has had increasing relevance from the 1970s (EMF, 2013b). Through the description of the impact of natural resources on the economy in terms of availing inputs for production and output sink for wastes, both open-ended and linear characteristics of economic systems are implied.
Key Terms in this Chapter
Biodiversity: Biodiversity refers to the variety of life on planet Earth in all levels, from genes to ecosystems. It also comprises of the cultural, evolutionary, and ecological processes that sustain life.
Green Supply Chain: This is the idea of incorporating sustainable environmental processes into the conventional supply chain.
Supply Chain Sustainability: An organization’s efforts on environmental and human impact consideration on its products’ transformation. The aim of supply chain sustainability is to cut down environmental harm from energy systems, water consumption and waste generation.
Circular Economy: A circular economy is an industrial system of economy whose aim is to regenerate or restore nature.
Linear Economy: An industrial system that is marked by unsustainable production and consumption. It is comprised of three key stages; take, make and dispose waste.