Circular Economy Reports by NITI Aayog (2026): ELVs, Waste Tyres & Lithium-ion Batteries
UPSC Current Affairs | Environment | Economy | The Prayas India
On January 22, 2026, NITI Aayog released three major Circular Economy reports at the International Material Recycling Conference (IMRC), Jaipur, focusing on End-of-Life Vehicles (ELVs), Waste Tyres, and Lithium-ion Batteries (LIBs). These reports aim to accelerate India’s transition toward a resource-efficient, low-carbon, and circular economic model, aligned with the Viksit Bharat 2047 vision, Net-Zero 2070 target, and Sustainable Development Goals (SDGs 9, 12, and 13).
The reports highlight India’s rising material demand, environmental risks from unmanaged waste, and the economic potential of recycling-driven growth in high-impact sectors.
Why These Circular Economy Reports Matter
India faces mounting pressure from:
- Rapid urbanization and motorization
- Electric vehicle (EV) expansion
- Rising e-waste and industrial waste
- Dependence on imported critical minerals
A circular economy approach helps:
- Reduce raw material imports
- Lower emissions and pollution
- Create green jobs
- Improve material security and industrial competitiveness
End-of-Life Vehicles (ELVs): Managing India’s Scrappage Challenge
Key Projections
- ELVs expected to nearly double from 23 million (2025) to 50 million (2030)
- Older BS-I vehicles emit up to 8 times more pollutants than modern BS-VI vehicles
- Vehicle scrappage (2005–2023 models) can recover ~98 million tonnes of steel
Environmental & Economic Significance
- Reduces air pollution and greenhouse gas emissions
- Promotes steel recycling, lowering energy and mining demand
- Boosts formal scrappage industry and green employment
Key Recommendations
- Reduce GST on formal vehicle scrapping to compete with the informal sector
- Establish 500 Automated Testing Stations (ATS) by 2027 (only 156 operational as of Sept 2025)
- Expand Registered Vehicle Scrapping Facilities (RVSFs)
- Implement Recognition of Prior Learning (RPL) to integrate informal scrap workers into the formal system
- Strengthen data integration with VAHAN & Parivahan portals for ELV tracking
Policy Linkages
- Vehicle Scrappage Policy
- National Green Mobility Mission
- Urban Air Pollution Mitigation Plans
Waste Tyres: Turning Pollution into Economic Value
Market Context
- India is the 3rd-largest tyre producer and consumer globally
- Generates 1.5–2 million tonnes of waste tyres annually
Key Challenges
- Recycling is dominated by informal and unsafe practices
- Use of open burning and substandard pyrolysis causes toxic emissions
- Weak monitoring of Extended Producer Responsibility (EPR) compliance
Key Recommendations
- Strengthen the EPR Framework with digitally auditable certificates
- Mandate Online Continuous Emission Monitoring Systems (OCEMS) for all tyre pyrolysis units
- Promote high-value recycling, including:
- Crumb Rubber Modifiers (CRM) for durable bituminous roads
- Rubberized asphalt and sustainable construction materials
- Encourage formal recycling ecosystems with green financing incentives
Strategic Benefits
- Reduces landfill and fire risks
- Enhances road durability & infrastructure sustainability
- Cuts fossil-fuel use in road construction
Lithium-ion Batteries (LIBs) & E-Waste: Securing India’s EV Future
Demand & Market Projections
- LIB demand projected to rise from 29 GWh (2025) to 248 GWh (2035)
- Driven by India’s target of 30% EV penetration by 2030
Economic & Resource Significance
- India’s e-waste value is estimated at ₹51,000 crore annually
- Only ~18% of the extractable value is currently recovered
- Critical minerals at stake: Lithium, Cobalt, Nickel, Manganese
Key Challenges
- Low recycling efficiency
- Safety risks from improper battery disposal
- Dependence on imported critical minerals
Key Recommendations
- Update BIS Standard IS 16046 to mandate chemical composition testing of recycled batteries
- Strengthen E-Waste Management Rules & Battery Waste Management Rules
- Provide additional incentives under the PLI Scheme for manufacturers using recycled materials
- Promote urban mining as a strategic alternative to mineral imports
- Establish certified battery recycling and recovery clusters
Strategic Impact
- Improves EV supply-chain security
- Reduces foreign dependency on lithium and cobalt
- Promotes clean energy transition & green manufacturing
National & Global Alignment
Supports Key Indian Missions:
- Viksit Bharat 2047
- Make in India
- PLI Scheme
- Net-Zero 2070
- Swachh Bharat Mission
- National Electric Mobility Mission
Contributes to Global Commitments:
- UN SDG 12 (Responsible Consumption & Production)
- Paris Climate Agreement
- Global Circular Economy Roadmap
Governance & Institutional Role
NITI Aayog Circular Economy Cell plays a central role in:
- Policy design & regulatory frameworks
- Industry collaboration
- Data-driven material flow analysis
- Inter-ministerial coordination
More info: NITI Aayog Circular Economy Cell
UPSC Relevance (Short)
- GS Paper III – Environment, Industry, Circular Economy, Resource Security
- GS Paper II – Policy & Governance
- Prelims – ELVs, EPR, LIBs, OCEMS, RVSFs, PLI
- Mains – Sustainable development, green growth, EV ecosystem
Conclusion
The three Circular Economy reports by NITI Aayog (2026) mark a strategic turning point in India’s waste-to-wealth journey. By targeting ELVs, waste tyres, and lithium-ion batteries, India aims to secure material supply chains, reduce pollution, create green jobs, and support long-term sustainable growth.
For UPSC aspirants, this is a high-value current affairs topic covering environment, economy, technology, and governance.
FAQs – NITI Aayog Circular Economy Reports (2026)
Q1. When were the Circular Economy reports released?
January 22, 2026, at IMRC Jaipur.
Q2. Which sectors do the reports cover?
End-of-Life Vehicles, Waste Tyres, and Lithium-ion Batteries.
Q3. Why are ELVs important?
They reduce pollution and recover valuable metals like steel.
Q4. What is the LIB demand forecast for 2035?
248 GWh, driven by EV expansion.
Q5. Why is this important for UPSC?
It links circular economy, sustainability, EV policy, waste management, and green growth.
