Ananya Singh

Importance of Sustainable Packaging in Driving India’s Circular Economy Urgency of Packaging Reform in India’s Waste Crisis The packaging industry of India is a rapidly expanding sector and a significant source of the nation’s plastic waste burden, currently valued at USD 84.37 billion in 2024 and set to hit 2.56 billion by 2029.1 The largest portion of the 9.46 million tonnes of plastic waste generated annually, amounting to nearly 59% comes from packaging, a majority of which are single-use, non-recyclable and discarded after minimal usage2. Flexible packaging considered to dominate the industry notably in the space of food, personal care and homecare remains of the most challenging to recycle.3 In spite of claimed recycling capacities between 60-70%, the effective circularity rate stands at just 8% owing to downcycling, pollution and the lack of integrated waste infrastructure.4 Packaging waste continues to leak into landfills or the environment by over 40% causing damage to public health, marine ecosystems and climate targets.5 Without intervention, the use of plastics would reach to an estimated 70.5 million tonnes by 2035 under the business-as-usual approach. The transition towards sustainable packaging cannot be a cosmetic change however rather, a foundation of facilitating a circular economy which focuses on the elimination of waste, retention of material value and decoupling the growth of the economy from the use of virgin raw material inputs. Sustainable Packaging and Its Role in Circularity Sustainable packaging refers to recyclable, compostable, reusable, or post-consumer recycled content that retains value across multiple life cycles. It includes mono-materials like polypropylene and polyethylene that simplify recycling, biodegradable polymers such as PLA and PHA, bioplastic films from sugarcane bagasse and starch,6 refillable packaging and lightweighting which minimizes material input while maintaining function. Circular packaging emphasizes design for recyclability, co-engineering of packaging and reverse logistics, and lifecycle assessments to validate benefits across the chain 7 such as how aseptic packaging extends shelf life without refrigeration reducing food loss and emissions both. Tetra Pak India’s Go Green initiative illustrates collection of used cartons and works with recyclers like Delight Packaging to recover polyAl and paper fibre, transforming them into tiles and paper boards, creating industrial symbiosis.8 Thus, packaging shifts from waste to a regenerative asset that reduces virgin material use, emissions, and drives innovations in refill, compostables, and post-use regeneration.9 Challenges to Scaling Sustainable Packaging and Systemic Responses Despite increasing traction, India’s transition towards sustainable packaging faces certain hurdles. Biodegradable and compostable packaging costs 2–5 times more than conventional plastics, deterring MSMEs from widespread adoption.10 1 https://ic-ce.com/sustainable-packaging-solutions-in-india-navigating-the-transition-to-a-circular-economy/ https://pmc.ncbi.nlm.nih.gov/articles/PMC-/pdf/polymers-.pdf 3 https://economictimes.indiatimes.com/small-biz/sustainability/india-finland-collaboration-poised-to-set-global-benchmarks-insustainable-packaging-practices-envoy/articleshow/-.cms 4 https://www.csiro.au/-/media/Environment/Circular-Economy-Roadmap-India/-_ENV_REPORT_IACPRoadmap_WEB230714.pdf 5 https://www.allsocialsciencejournal.com/uploads/archives/-_SER-.pdf 6 https://www.ceew.in/sites/default/files/india-circular-economy-potentialwebceew16dec.pdf 7 https://naturpac.org/news/the-importance-of-environmental-packaging-and-its-uses-around-the-world/ 8 https://www.tetrapak.com/en-in/sustainability/focus-areas/circularity-and-recycling/approach-recycling-and-circularity 9 https://recyclingpartnership.org/circular-packaging-101/ 10 https://www.resurgentindia.com/pdf/Sustainable%20Packaging%20%E2%80%93%20Status%20and%20Challenges%20(Initiativ es%20by%20FMCG%20Sector)%20-%20Final%20(3).pdf 2 Composting and food-grade recycling infrastructure remain underdeveloped, while inconsistent standards for recyclability and compostability complicate compliance. Multilayer plastics used in FMCG, and e-commerce remain non-recyclable.11 Though India has 5 million tonnes of installed recycling capacity, only half operates effectively due to poor traceability and exclusion of informal workers, who handle over 90% of recyclables.12 Systemic solutions are emerging with stronger EPR with traceability, digital credit registries, and performance-based rules under PWMR (2022), SUP bans nationwide, and FSSAI’s approval of rPET for food-grade packaging.13 Investments in Material Recovery Facilities, AIenabled sorting, and reverse logistics are critical.14 Mainstreaming informal workers through recognition, training, and inclusion in EPR credits can improve traceability and equity. Odisha is producing PLA from agri-waste,15 while ITC and HUL are adopting mono-materials and refill systems.16 Incentives such as Viability Gap Funding, green tax benefits, and R&D support will be essential for scaling innovations and ensuring cost parity. Institutional Alignment and Economic Opportunity Sustainable packaging supports SDG 12 (Responsible Consumption), SDG 13 (Climate Action), SDG 11 (Sustainable Cities), and SDG 9 (Industry & Innovation), as well as national programs like Swachh Bharat, Make in India, and GOBARdhan scheme.17 Circular packaging could reduce virgin plastic demand by 30%, cut emissions by 20%, and generate over ₹1.1 lakh crore by 2030, creating 1.4 million green jobs.18 More than just a packaging innovation, it offers a structural pathway to rewire production systems, localize material flows, and embed resilience across various supply chains. E-commerce has phased out single-use plastic packaging and is piloting reusable delivery systems.19 Organisations like Saahas Zero Waste and Hasiru Dala show how integrating informal workers into certified supply chains improves traceability and equity.20 21 States like Maharashtra and Karnataka are investing in decentralized waste infrastructure to build circular packaging rooted in local recovery. These developments highlight sustainable packaging as both a climate solution and a strategic pillar of India’s circular economy and industrial future.22 Conclusion Sustainable packaging is central to India’s economic and environmental future. Amid resource constraints, rising waste, and rising consumption, it offers a scalable, just, climate-compatible solution. It transforms packaging from a short-term pollutant into a long-term source of value creation. The success of this depends on coordinated policy, industry cooperation, financial innovation, and citizen engagement. As India pursues Sustainable Development Goals and net-zero plans, sustainable packaging is not only a solution to plastic pollution but a cornerstone of a truly circular economy. 11 https://www.pwc.in/assets/pdfs/sustainable-packaging-in-the-fmcg-and-retail-sector.pdf https://sustainabledevelopment.in/wp-content/uploads/2024/05/IPP-Annual-Report_2022-23.pdf 13 https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=- https://www.orfonline.org/public/uploads/posts/pdf/-.pdf 15 https://www.ceew.in/bio-based-packaging-material-manufacturing 16 https://ficci.in/public/storage/SPDocument/24114/T7ftvVhfbBa5qowxoeTH48LT62x4bU9ImgSQUh6V.pdf 17 https://globalcompact.in/wp-content/uploads/2023/08/Sustainable-Circular-Economy-1.pdf 18 https://www.teriin.org/sites/default/files/2021-12/Circular-Economy-Plastics-India-Roadmap.pdf 19 https://s3.amazonaws.com/sustainabledevelopment.report/2025/sustainable-development-report-2025.pdf 20 https://ficci.in/public/storage/SPDocument/24114/T7ftvVhfbBa5qowxoeTH48LT62x4bU9ImgSQUh6V.pdf 21 https://ficci.in/public/storage/SPDocument/23563/Plastic_Waste_Management.pdf 22 https://darpg.gov.in/sites/default/files/CSD-2023/Circular_Economyt.pdf 12