The Circular Economy in South Asia: An Overview of Progress and Regional Trends

In South Asia, a region facing rapid economic growth, immense population pressure, and high climate vulnerability, the circular economy (CE) has become a critical imperative for sustainable development. This study provides a comparative overview of the CE landscape across eight South Asian countries: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka. The analysis reveals the CE transition is nascent region-wide, though India has advanced its policy landscape through a comprehensive suite of rules and missions and Pakistan is developing a national policy. The primary focus remains on waste management, evidenced by programs like Bhutan’s ‘Zero Waste by 2030’ vision, the Maldives’ Single-Use Plastic Phase-Out Plan, and Sri Lanka’s Clean Sri Lanka Programme. While Extended Producer Responsibility (EPR) is emerging for plastics and e-waste in India, Bangladesh, Sri Lanka, and Pakistan, a significant “policy-practice gap” persists, undermined by weak enforcement and governance fragmented across priority sectors like plastics, food systems, and textiles. Most major CE initiatives are catalyzed by international development partners, with regional programs playing a key role in funding innovation. Finally, while the informal sector is the backbone of material recovery, ensuring a just transition that improves working conditions and secures livelihoods remains a critical challenge. The absence of a cohesive regional framework limits collaboration. Scaling the circular economy in South Asia requires integrated national strategies, prioritizing a just transition for the informal sector, and establishing a regional platform for policy harmonization to create self-sustaining system through multi-sectoral involvement, including the business sector.