MAINS Current Affairs includes Circular Economy: Turning Waste into Wealth & India Advocates Greater Global South Representation in UNSC

Economy

1. Circular Economy: Turning Waste into Wealth

Context: Union Minister Jitendra Singh stated that the global economy is witnessing a major transition towards a circular model, where waste is increasingly viewed as a resource. This was highlighted at the Global Symposium on Resource Efficiency and Circular Economy in New Delhi.

What is Circular Economy?

• A circular economy (CE) refers to a production and consumption system that focuses on minimizing waste generation across all stages of a product’s lifecycle—from extraction of raw materials to manufacturing, usage, and final disposal.
• India’s circular economy is projected to reach a market size of nearly $2 trillion and generate about 10 million jobs by 2050.

Significance of Circular Economy

• Economic Potential: According to UNDP, shifting to circular models globally could yield around $4.5 trillion in economic gains by 2030, while also lowering emissions and promoting sustainable employment.
• Employment Generation: Creates jobs in areas such as recycling, refurbishing, remanufacturing, and eco-friendly design.
• Market Competitiveness: Companies adopting circular practices gain an advantage as consumer demand shifts toward sustainable goods. 

India’s Role in Advancing Circular Economy

• Swachh Bharat Mission (Urban): Promotes waste management based on the 3R principles—Reduce, Reuse, Recycle.
• GOBAR-Dhan Scheme: Encourages conversion of organic waste into biogas and manure.
• The scheme covers about 8% of districts, with over 1000 biogas plants operational (Feb 2025).
• E-Waste Management Rules (2022): Strengthen handling and recycling of electronic waste.
• Extended Producer Responsibility (EPR): Makes producers accountable for plastic waste management.
• India imposed a ban on single-use plastics in 2022.
• Hosted the 12th Regional 3R and Circular Economy Forum (Jaipur, 2025), boosting regional cooperation.

Challenges in Implementation

• Lack of Technical Know-how: Many stakeholders lack awareness and expertise.
• High Initial Costs: Infrastructure and redesigning products require heavy investment.
• Uneven Adoption: SMEs lag behind large corporations in adopting circular practices.
• Weak Enforcement: Policies exist but implementation and incentives remain inadequate.

Way Forward

• Ensure wider dissemination of circular economy practices across all levels of industry.
• Encourage repair, reuse, and longer product lifecycles.
• Strengthen recycling systems and enforce EPR more effectively to reduce environmental damage.

International Relations

2. India Advocates Greater Global South Representation in UNSC

Context: At the 2026 ECOSOC Forum on Financing for Development and discussions on UN reforms, India called for urgent restructuring of the UN Security Council (UNSC), enhanced representation for the Global South, and reforms in global financial systems.

Key Issues in UNSC

• Outdated Framework: Reflects the 1945 post-WWII order and fails to account for emerging powers like India, Brazil, Germany, and Japan, along with Africa’s growing importance.
• Representation Deficit: Regions like Africa and Latin America lack permanent representation, leading to imbalance.
• Veto Power Concerns: The P5 (USA, UK, France, Russia, China) can block decisions, often resulting in inaction during crises (e.g., Syria, Ukraine).
• Legitimacy Issues: Decisions are often seen as biased and influenced by power politics.
• Limited Effectiveness: UNSC has struggled to resolve conflicts and prevent wars effectively.
• Geopolitical Tensions: Rivalries such as USA–China and Russia–West create deadlock.
• Slow Reform Process: Requires amendment of the UN Charter and approval by 2/3 of members including all P5.
• Regional Disagreements: Rivalries (India–Pakistan, Brazil–Argentina) hinder consensus.
• Neglect of Emerging Issues: Focus remains on security, ignoring challenges like climate change and pandemics.

India’s Stand on Reform

• Core View: Current UNSC structure is outdated and lacks inclusivity.
• Demand: Expansion in both permanent and non-permanent categories.
• Emphasis on inclusion of Global South and African nations.
• Key Groupings:
  • G4 (India, Brazil, Germany, Japan)
  • African Union (Ezulwini Consensus)
  • 69 Group (developing nations supporting reform)
• Peacekeeping Role: India has contributed over 275,000 personnel since 1948, making it a major contributor.
• Focus on strengthening peacekeeping and conflict resolution mechanisms.

Obstacles to Reform

• China’s Opposition: Resists India’s inclusion due to strategic concerns.
• Uniting for Consensus Group: Opposes expansion of permanent seats.
• Legal Barriers: Charter amendments (Articles 23, 27, 108) require broad consensus.

Current UNSC Structure

• 5 Permanent Members (P5) + 10 Non-permanent Members (2-year term)

Global South Explained

• Refers to developing nations in Asia, Africa, and Latin America, often marked by lower industrial development and colonial legacy.
• Though numerically dominant in the UN, they lack proportional influence.

Issues in Global Financial System

• Annual $4 trillion SDG financing gap
• Dominance of institutions like IMF and World Bank
• Limited representation of developing countries

India’s Suggestions

• Build a more equitable and development-focused financial system
• Reform global financial institutions
• Enhance Global South participation
• Promote Digital Public Infrastructure (DPI)
• Align reforms with the Sevilla Commitment

Significance

• For India: Strengthens its position as a leader of the Global South.
• For Global Governance: Improves legitimacy and effectiveness of institutions, moving towards a multipolar order.

Conclusion

• India’s approach reflects a consistent push for structural reforms in global institutions to address inequalities and underrepresentation.
• Such reforms are essential for achieving SDGs and ensuring a more balanced global order.

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