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India's electronics sector is set to harness $7 billion untapped revenue by 2035 via circular business model and policy pathways, says the latest report released here on Monday.
The joint report, prepared by the India Cellular and Electronics Association (ICEA) and Accenture, identifies six circular business models, including circular design, repair, and resell, that could unlock an impressive $7 billion in untapped revenue by 2035. These models hold the potential to reshape the electronics sector, fostering economic growth and enhancing its resilience.
“The circular business models are projected to contribute to a market size of $13 billion by 2035. However, through effective public-private partnerships, the report suggests that the total addressable market could reach $20 billion, revealing a remarkable untapped potential of 35 per cent,” says the report titled Pathways to Circular Economy in Indian Electronics Sector.
Alkesh Kumar Sharma, Secretary, MeitY, said that embracing the circular economy and sustainable growth is pivotal as India's resource consumption is surging.
“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 — reuse, repair, recover and re-manufacture,” said Sharma.
Three core business models -- Repair, Resell, and Recycling -- are already thriving in India, predominantly driven by the informal sector. Around 90 per cent of collection and 70 per cent of recycling are handled by this competitive sector.
However, only 22 per cent of collected e-waste is managed by the formal sector, revealing room for improvement, the report mentioned.
Pankaj Mohindroo, Chairman, ICEA, highlighted the future potential of India's electronics sector as a global manufacturing hub.
“I am confident that the electronics industry would facilitate sustainable circular economy practices to ensure a sustainable green future for the generations to come,” Mohindroo said.