Answer: Circular economy is an economic system that is based on expanding the life cycle of products by reusing, recycling, repairing and renovating existing products as much as possible. With a growing population, rapid urbanization, climate change and environmental pollution, India must move towards a circular economy. India's circular economy development route is estimated to generate an annual value of US$ 218 billion by 2030. 

Potential of a circular economy approach in addressing the challenges of waste management and pollution in India: 

• Reduced waste as the life-cycle of a product is expanded by prioritizing the reduction, reuse and recycling of materials. 
• Enhanced resource efficiency as the pressure on the production line is reduced, thus conserving raw materials and decreasing energy and water consumption. 
• Reduced pollution due to reduced waste generation, hence, conserving air, water and soil quality. 
• Increased economic activity by creating new business opportunities, generating jobs in waste management and recycling sectors. 

Policy measures to strengthen circular economy in India: 

• Introducing National Policy for circular economy would be a watershed moment as it would bring all the fragmented sectors under a single umbrella. 

• For example: It would help extend EPR provision to all the applicable sectors. 

• Waste management and recycling infrastructure development would encourage the formalization of the sector through public-private partnership. 

• For example: Swachh Bharat Mission emphasizes on waste management. 

• Incentives and tax benefits would attract businesses to endeavor in the recycling and waste management industry. 

• For example: Imposing lower GST rates on recycled materials.  

• Dedicated circular economy funds would provide impulse for sector specific initiatives, technological innovations, etc. 

• For example: Atal Incubation Centres, “Green growth” strategy in Budget 2023-24.  

• Awareness and education amongst the public through various media campaigns will give push to the demand side of the curve. 

• For example: LiFE mission on sensible consumption and production. 

Case study- Denmark is a circular economy frontrunner, integrating circularity in waste management, energy and construction. Emphasizing waste separation, recycling and energy recovery, it promotes sustainable public procurement and supports circular business models. 

With only 2% of the world’s landmass and 4% of freshwater resources, a linear economy model of ‘Take-Make-Dispose’ would constrain India’s manufacturing sector and consequently, the overall economy. Therefore, it is essential to recognize the material flow in the manufacturing process and shift towards a circular economy, which provides multipronged economic and ecological benefits.