Addressing the Regional Forum on Circular Economy – South Asia, jointly organised by SAARC and the Federation of Chambers of Commerce and Industry of Sri Lanka (FCCISL) with support from the Institute for Global Environmental Strategies (IGES), brought back a vivid memory from my childhood in Mumbai.
Echoing down the street outside our apartment, a vendor carrying a large basket on his head would call out: ‘Bhandiwalla, Bhandiwalla!’ Once or twice a year, my mother would call him upstairs. He would unload his basket to reveal sparkling stainless-steel utensils. My mother would bring out a stack of old, worn-out family clothes, and the bargaining would begin. Eventually, they would settle on a fair barter-a gleaming steel plate, bowl, or glass in exchange for a pile of discarded garments.
That street vendor was a key operator in a thriving, decentralised circular economy. He took those old clothes and systematically repurposed them. Usable garments were cleaned, ironed, and resold in smaller towns and villages. Hardware like buttons and zips were salvaged and sold to local tailors. Nothing was wasted; everything was reused, repurposed, or recycled. Landfills simply did not factor into the equation.
A philosophy embedded in cultural DNA
This informal barter system was not merely a survival tactic; it was the practical manifestation of an ancient South Asian worldview. The Indian philosophy of Vasudhaiva Kutumbakam (‘the world is one family’) highlights the intrinsic interdependence of all living beings. Similarly, the concept of Ahimsa-practiced so powerfully by Mahatma Gandhi-demands non-violence not only toward human beings but also implicitly toward the natural environment.
At South Asian dining tables, children are raised with a fundamental command: never waste a single morsel of food. In our culture, squandering resources is viewed almost as a moral failing.
While the modern global economy operates largely on a linear ‘take-make-dispose’ model, the circular economy focuses on ‘use, repurpose, renew, and recycle.’ It ensures materials remain continuously within the economic loop rather than ending up as toxic land contamination.
Entrepreneurial communities: South Asia’s original circular pioneers
While India’s current position as one of the world’s fastest-growing major economies is frequently attributed to its demographic dividend, its bedrock lies in entrenched entrepreneurial communities. Long before modern sustainability frameworks were codified, these merchant networks jumpstarted trade by operationalising zero-waste principles:
The Marwaris (Rajasthan) and operational efficiency: Marwari trade culture was built on eliminating operational leakage (kasar). In early merchant supply chains, packaging materials-dunnage, burlap sacks, wooden crates, and metal bindings-were systematically harvested, graded, and resold across secondary commodity markets. Machinery in Marwari-run mills was continuously repaired, retrofitted, and downgraded through secondary manufacturing tiers before final scrap recovery. Furthermore, through community banking instruments (Hundis), financial capital circulated internally, minimising interest leakage to external institutions.
Nattukottai Chettiars (Tamil Nadu) and cross-border loops: As maritime merchant bankers operating across South and Southeast Asia, the Chettiars optimised cross-border shipping networks. Vessels exporting spices or textiles never returned empty; they brought back timber, stone, and raw materials as structural ballast, which were immediately converted into construction materials upon arrival.
Gujaratis and Jains (Western India) and material valorisation: Guided by Ahimsa, these trading guilds prioritised resource stewardship. Gujarati networks pioneered secondary textile markets by collecting cotton mill waste (ru) and processing short-staple fibers into coarse industrial cloth, paper, or stuffing. This ethos also built major industrial salvage hubs like Alang in Gujarat, where decommissioned ships are systematically stripped down to re-roll structural steel and re-introduce every component back into the industrial supply chain.
Parsis (Mumbai and Gujarat) and extended lifespan design: Industrial pioneers like the Tata and Godrej families rejected planned obsolescence. Heavy consumer products-from steel cabinetry and locks to industrial machinery-were engineered for multi-generational durability, modular repair, and high residual scrap value. Moreover, industrial profits were systematically reinvested into urban green belts, housing trusts, and civic infrastructure.
Bunts (Coastal Karnataka) and integrated agro-hospitality loops: In traditional Bunt-run restaurant networks (such as Udupi eateries), organic kitchen waste was redirected to coastal dairy farms or converted into agricultural compost. In native Canara agricultural estates, every component of coconut and arecanut cultivation was monetised-husks became coir fiber, fronds were woven into roofing, shells were converted into activated carbon, and fallen leaves served as biodegradable serving plates (patravali).
Modern start-ups harnessing waste for wealth
This ancestral ingenuity is currently experiencing a high-tech revival across South Asia’s start-up ecosystem:
Chakr Innovation has developed the ‘Chakr Shield,’ a technology that captures particulate matter emissions from diesel generators and converts it into high-grade industrial ink-now purchased by global tech firms like Dell.
Boson White Water addresses industrial water security by treating sewage effluent from large apartment complexes to potable standards for use in IT parks and industrial facilities. In an era of booming data center expansion, such liquid waste innovations are vital.
The scale of the crisis
Despite these deep-rooted traditions and promising innovations, South Asia faces an unprecedented environmental challenge driven by rapid urbanisation:
1. Surging Solid Waste: India’s urban population is projected to reach 600 million (40%) by 2030 and 800 million by 2050. Consequently, annual municipal solid waste (MSW) generation will surge from roughly 62 million tons today to 165 million tons by 2030, and 436 million tons by 2050.
2. Urban Land Loss: Unmanaged dumping currently locks up over 10,000 hectares of prime urban land across 2,100+ legacy dumpsites (such as Delhi’s Ghazipur and Okhla mounds), posing serious public health hazards.
3. Unused Liquid Waste: India generates 112 billion litres of domestic wastewater daily (the 3rd largest volume globally), but only ~28% undergoes treatment. Monetising treated urban wastewater for industrial and agricultural reuse represents a potential ?3.04 trillion market opportunity by 2047.
4. Resource Dependencies: Urban material consumption is set to more than double-from 40 billion tons in 2010 to 90 billion tons by 2050. Heavily reliant on imported critical minerals for electronics, electric vehicles (EVs), and heavy manufacturing, the region urgently requires urban mining and closed-loop recycling networks to secure strategic supply chain autonomy.
The macroeconomic opportunity
Where there is a resource crisis, there is tremendous macroeconomic potential. Joint research by the Ellen MacArthur Foundation and NITI Aayog reveals that transitioning to a circular economy could unlock ?40 lakh crore ($624 billion) in annual value for India by 2050-equivalent to 30% of its current GDP.
In the near term, adopting circular practices across construction, agriculture, mobility, and manufacturing could yield ?14 lakh crore ($218 billion) in annual material cost savings by 2030, lowering production costs by 11% while creating millions of skilled and semi-skilled green jobs across formal and informal sectors.
Bridging tradition and tomorrow
The path forward for South Asia does not require importing alien economic philosophies. The core tenets of the circular economy are already encoded in our cultural history, our childhood memories of the bhandiwalla, and our traditional business networks.
By combining modern technology and regulatory frameworks with our ancestral values of resource stewardship and non-wastage, South Asia can transform its urban waste challenges into a powerful engine for job creation, sustainable growth, and long-term economic prosperity.