Circular Economy:
NITI Aayog launched three thematic reports on Enhancing Circular Economy in End-of-Life Vehicles (ELVs), Waste Tyres, E-waste, and Lithium-ion Batteries at the International Material Recycling Conference (IMRC) organised by the Material Recycling Association of India (MRAI) in Jaipur.The reports outline challenges and policy pathways to strengthen India’s circular economy ecosystem.
- The Circular Economy refers to an economic model whose objective is to produce goods and services in a sustainable way, by limiting the consumption and waste of resources (raw materials, water, energy) as well as the production of waste.
- Unlike the linear economy (take–make–dispose), the circular economy includes 6 R’s – Reduce, Reuse, Recycle, Refurbishment, Recover, and Repairing of materials.
Key Highlights of the NITI Aayog Reports on Circular Economy in the Mobility:
- Rapid urbanisation and rising vehicle ownership, including the surge in electric vehicles, are accelerating the generation of ageing vehicles in India.
- Electric Vehicles (EV) sales increased from 50,000 in 2016 to 2.08 million in 2024, with the government targeting 30% EV share in total vehicle sales by 2030, increasing future ELV volumes.
- The number of End-of-Life Vehicles is projected to rise from 23 million in 2025 to 50 million by 2030, intensifying environmental and material recovery challenges.
- Limited availability of Automated Testing Stations (ATS) and Registered Vehicle Scrapping Facilities (RVSFs) constrains formal scrappage and circular economy outcomes.
- Weak financial viability of formal scrappage units, procedural delays, and low consumer awareness sustain informal dismantling practices.
- Growth in vehicle ownership and EV adoption is driving higher tyre consumption, leading to a sharp increase in End-of-Life Tyres (ELTs).
- The tyre recycling ecosystem remains fragmented, with poor traceability, lack of standards, and dominance of informal recyclers.
- High-value recycling pathways such as recovered Carbon Black (rCB) and tyre retreading remain underutilised due to weak standards and market mandates.
- Downcycling of tyre waste leads to missed opportunities for import substitution and green job creation.
- Digitalisation and the clean energy transition are rapidly increasing E-waste and Lithium-ion battery waste in India.
- E-waste generation is expected to rise from 6.19 MMT (million metric ton) in 2024 to 14 MMT by 2030, significantly increasing recycling and environmental management pressures.
- Demand for Lithium-ion batteries is projected to grow from 29 GWh in 2025 to 248 GWh by 2035, driven by EV adoption and energy storage needs.
- Informal recycling using unsafe methods dominates the sector, causing pollution, health risks, and economic losses.
- Extended Producer Responsibility (EPR) for E-waste covers only a few metals, while weak monitoring allows fake recyclers and fraudulent certifications.
- Inefficient recycling deepens India’s dependence on imported critical minerals, affecting long-term energy security.
