New Delhi: Circular business models can unlock revenue potential of $7 billion by 2035, according to a joint report by India Cellular & Electronics Association (ICEA) and Accenture issued Monday.
A total of six circular business models, including circular design, repair, and resell, can reshape the electronics sector, driving economic growth and boosting resilience. “The projected market size for these circular models is valued at $13 billion by 2035. Yet, the total addressable market, achievable through the public and private partnerships, increases to $20 billion, revealing an untapped potential of 35%,” the report said.
The circular economy approach in electronics domain must outgrow its role in e-waste management to evolve into a powerhouse for resilience, resource efficiency, and economic growth.
India’s dynamic circular electronics policy framework is undergoing a metamorphosis, driven by the pivotal E-Waste Management (EWM) Rules and the strategic prioritization of e-waste by NITI Aayog.
The report highlighted that failure to embrace the circular transition could affect approx. 1-3% of electronics industry’s EBITDA, leading to potential revenue loss.
India’s unique socio-economic and manufacturing landscape, a strategic balancing of five key trade-offs is imperative. These include decisions on policy vision, formalizing the informal sector, incentivizing ease of doing business, managing supply-side strength, and tapping into consumer-driven demand shift, the report added.
It added that three core business models – repair, resell, and recycling – were already thriving in India, predominantly driven by the informal sector. Also, 90% of collection and 70% of recycling are handled by this competitive sector, but only 22% of collected e-waste is managed by the formal sector, revealing room for improvement.
The report presents nine bold policy interventions spanning downstream, use-phase, and upstream pathways. These include fostering multi-brand repair services, defining refurbishment standards, and creating a product-as-a-service framework.
“Cumulatively, the proposed policies can generate an economic value of $1.7 billion (net of costs) and divert 0.5 million tons of WEEE (Waste Electrical and Electronic Equipment), focusing solely on smartphones and laptops until 2035,” the report added.
Alkesh Kumar Sharma, Secretary, MeitY, emphasised that the report offers of series of bold policy interventions. “The report resonates with the government’s commitment to India-centric circular business models. It evaluates readiness, identifies opportunities, and proposes evidence-based policies, propelling us towards responsible resource management and the 4Rs—reuse, repair, recover, re-manufacture. Kudos for this remarkable contribution to a greener future.”
Download The Mint News App to get Daily Market Updates.
More
Less
Updated: 29 Aug 2023, 01:14 AM IST
www.livemint.com
Source link