NITI Aayog Flags Circular Economy as Critical to India’s EV, E-Waste Future

The reports position circularity not merely as an environmental intervention, but as a strategic pillar for Viksit Bharat 2047, aligned with India’s transition to a low-carbon, resource-efficient growth model.

As India’s electric mobility and digital economy scale rapidly, NITI Aayog has underscored the urgency of building robust circular economy systems by launching three major reports on End-of-Life Vehicles (ELVs), waste tyres, e-waste and lithium-ion batteries on 22 January 2026.

The reports were unveiled at the International Material Recycling Conference (IMRC) organised by the Material Recycling Association of India (MRAI) in Jaipur, bringing sustainability, recycling infrastructure and material security into sharp policy focus.

Circular economy moves from environmental goal to strategic necessity

The reports position circularity not merely as an environmental intervention, but as a strategic pillar for Viksit Bharat 2047, aligned with India’s transition to a low-carbon, resource-efficient growth model.

With clean energy systems, electric vehicles and digital devices becoming central to India’s development trajectory, the volume of waste streams is set to surge:

• EV sales grew from 50,000 units in 2016 to 2.08 million in 2024

• Lithium-ion battery demand is projected to jump from 29 GWh in 2025 to 248 GWh by 2035

• End-of-Life Vehicles (ELVs) are expected to rise from 23 million in 2025 to 50 million by 2030

• E-waste generation is forecast to increase from 6.19 million tonnes (2024) to 14 million tonnes by 2030

These trends, NITI Aayog notes, make circular economy frameworks essential for material recovery, energy security and industrial resilience.

What the reports recommend

Developed through extensive consultations with line ministries, regulators, industry players and knowledge partners, the three reports provide a granular assessment of India’s current recycling and waste management ecosystem.

Key focus areas include:

• Infrastructure development for organised recycling and material recovery

• Formalisation of informal sectors across ELVs, tyres and e-waste

• Strengthening Extended Producer Responsibility (EPR) mechanisms

• Unlocking economic value through secondary raw material markets

• Improving resource efficiency and material security for critical minerals

The recommendations aim to help India reduce import dependence, support domestic manufacturing, and create new green jobs and revenue streams.

Why this matters now

As India pushes toward 30% EV penetration by 2030 and expands electronics manufacturing under Make in India, unmanaged waste could become a major economic and environmental bottleneck. NITI Aayog’s reports signal a policy shift toward treating waste streams as strategic assets rather than liabilities.

For EV makers, battery manufacturers, recyclers, startups, urban planners and policymakers, the message is clear: circular economy systems must scale in parallel with clean tech adoption.

Access the reports

• Enhancing Circular Economy of End-of-Life Vehicles (ELVs) in India

• Enhancing Circular Economy of Waste Tyres in India

• Advancing Circular Economy of E-waste and Lithium-Ion Batteries in India

Call to action

Clean-tech startups, recycling innovators, EV OEMs, battery players and state governments now have a policy-backed blueprint to invest, collaborate and build scalable circular economy solutions that will define India’s sustainable growth over the next two decades.