By Rishabh Jain & Akanksha Tyagi
This World Environment Day, India stands at a pivotal moment. As a populous, fast-growing, and climate-vulnerable nation we must find ways to meet soaring energy demand, reduce emissions, and secure economic future — all at once. A rapid transition to clean energy is non-negotiable if we are to meet our 2030 climate targets and achieve net-zero by 2070. Yet, our clean energy ambitions currently depend heavily on imported raw materials and components for solar panels, wind turbines, batteries, and electric vehicles.
By 2047, India can aspire to be the largest green economy — market-driven, job-rich, and low-carbon — by scaling up clean-tech manufacturing and raising its GDP share from 14% to 22-25%. But this growth must be environmentally sustainable. Localising clean energy manufacturing with a circular economy offers a powerful opportunity: to reduce supply chain risks and environmental impact, create green jobs, and build resilience. A green, circular “Make in India” is not just an industrial imperative, it is a climate and development strategy fit for the 21st century.
Since the supply chain disruptions during Covid-19, the government has taken several initiatives to support domestic manufacturing of clean energy technologies. These include production-linked incentives, making adjustments to tariff and non-tariff barriers, and expansion of the offtake market for clean-tech products. For example, flagship schemes such as PM Surya Ghar Muft Bijli Yojana and PM Kisan Urja Suraksha evam Utthan Mahabhiyan mandate using Made in India solar cells and modules. These efforts have spurred domestic manufacturing; solar module capacity is now three-four times India’s annual requirement. Yet, despite rapid growth and awareness of limited lifespans — 25-30 years for solar modules and wind turbines, 10-12 years for batteries — end-of-life waste remains a sidelined issue.
Estimations by the Council on Energy, Environment and Water (CEEW) show India could generate about 600 kilotonnes of solar waste by 2030, over 56% of which will come from capacities already deployed till 2023.
This Budget outlined circular economy as a key enabler in strategically and sustainably scaling our manufacturing capabilities. Currently, companies struggle to collect clean energy waste from diverse and remote sources. Without clear incentives and defined responsibilities, waste management remains a “nice-to-have” rather than a necessity. Products end up in landfills, harming the environment. We also lose out on critical minerals that could be reused for manufacturing. In contrast, designing for circularity promotes value chain-wide practices that curb environmental impact and support material recovery.
Product design should involve key considerations: use of materials (mixed or single), assembly methods (glued or screwed), availability of components for repair, and durability. This is where strategic circular design comes in. For instance, lead-acid batteries are designed for efficient recycling, with components like lead, lead paste, and plastics easily separable and recoverable through established techniques. India’s mature lead-acid battery sector offers valuable lessons for designing products with circularity in mind.
First, circularity must be mainstreamed. While India’s Extended Producer Responsibility guidelines already have provisions to include recovered materials in new products, it should also nudge businesses to adopt sustainable design choices. Large Indian manufacturers should embed circular economy principles into their decision-making — from sourcing raw materials to designing products for repair, reuse, and recycling. This approach not only reduces waste but also strengthens India’s control over technology development. The government can support this shift by promoting transparency around product recyclability, helping consumers make informed choices. The European Commission has introduced the Ecodesign for Sustainable Products Regulation that requires manufacturers to maintain a digital product passport that will disclose information on lifecycle impacts, recycled content, repairability, and material composition. Encouragingly, the National Critical Mineral Mission has allocated Rs 1,650 crore for recycling efforts which could improve domestic access to key minerals and allow manufacturers to increase the content of recycled materials in their products.
Second, create domestic demand for clean-tech products that follow circular manufacturing through blended mandates in public contracts. For example, the Solar Energy Corporation of India can require a minimum percentage of solar modules produced through circular methods in large-scale public projects, starting from 1% and increasing gradually. Criteria for such offtakes should evolve and change based on tech advances. This should eventually phase out as the market matures and economies of scale are achieved.
Third, adopt circular designs to stay competitive in global markets. Countries like the US, Australia, Japan, Korea, and those in Europe already have circularity targets in place. By learning from and partnering with them, Indian firms and start-ups can accelerate progress and drive innovation through R&D. More importantly, it will help avoid trade restrictions like product standards — crucial for growing our clean-tech manufacturing market.
Unfortunately, circular economy efforts are often seen as fixes to broken linear systems. But since India is still building its clean energy manufacturing base, we have a unique opportunity to embed circularity from the start. Doing so won’t just cut waste and emissions; it can give India a manufacturing edge and improve long-term profitability by reducing input costs, enhancing supply chain resilience, and meeting global market expectations.
The writers are respectively senior programme lead and programme lead, Council on Energy, Environment and Water (CEEW).
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