ANALYSIS OF CIRCULAR ECONOMY PRACTICES IN INDIAN PLASTIC SUPPLY CHAIN

Abstract

Plastics have become an integral part of our modern lives, but their improper disposal and linear use-and-dispose model have led to severe environmental and social consequences. The circular economy principles promote the idea of a continuous "closed loop" system. This means that plastics are designed, produced, used, and then recycled or repurposed, keeping them within the economic system for as long as possible. However, there are several challenges to implementing a circular economy in the plastic supply chain. One significant challenge is changing the current linear, “take-make-dispose” model of production and consumption. This shift will require collaboration between businesses, governments, and consumers. Governments can play a crucial role in supporting the transition to a circular economy by setting targets, creating incentives and regulations, and investing in research and development. Businesses can also drive the transition by redesigning products, developing new materials and recycling technologies, and creating closed-loop supply chains. Consumers can play their part by adopting a circular mindset, such as reducing waste, choosing products that are designed for circularity, and properly disposing of plastic waste. Thus, keeping these challenges and opportunities in mind, this study aims to analyze implementation of circular economy principles within the plastic supply chain, specifically focusing on the context of India. This research work is structured around three main objectives and is divided into six chapters to provide a comprehensive analysis. The first chapter serves as an introduction, providing the necessary background and rationale for the study. It emphasizes the significance of incorporating circular economy principles within the plastic supply chain to optimize resource utilization and minimize waste generation. The second chapter focuses on an extensive literature review, delving into the principles of circular economy. It thoroughly explores circular economy definitions and their application specifically to the plastic supply chain. Additionally, the chapter conducts a comprehensive review of existing literature on the drivers and barriers to implementing and adopting circular economy practices. This review identifies research gaps and establishes the research objectives of the study. The third chapter outlines the research approach adopted, discussing the methodologies employed and providing a concise description of each. It ensures a rigorous and systematic methodology in addressing the research objectives. In the fourth chapter, a framework is developed to identify the barriers hindering the adoption of circular economy and propose effective solutions to overcome these barriers. Through meticulous analysis, six main categories of barriers and thirty-three sub- category barriers are identified. Furthermore, eighteen solutions are presented to address these barriers. Among the identified barriers, legislative barriers emerge as the most critical, followed by financial and organizational barriers. The study suggests that stringent enforcement actions, such as the implementation of Extended Producer Responsibility, bans on single-use plastics, and the adoption of Advance Disposal Fees and Basel Ban Amendments, hold promise in mitigating barriers to circular economy adoption. The fifth chapter focuses on identifying the drivers that promote the implementation of circular economy practices in the Indian plastic supply chain. Through an empirical case study of a plastic organization, twenty drivers are identified, and their causal relationships are established. The study reveals that climate change, resource scarcity, and economic support from financial institutions exert the most significant influence on driving circular economy implementation. In conclusion, the final chapter of this thesis presents significant managerial and theoretical implications derived from the findings of the study. These implications provide valuable insights for practitioners in the plastic industry providing guidance to inform their decision-making processes and shape their strategies. Additionally, the chapter contributes to the existing body of knowledge by advancing theoretical understanding in the field of circular economy and its application within the plastic supply chain.