Circular Economy: Inclusion Framework of Aluminium Scrap in the Indian Material Flow Process

The rapid growth in industrialization and urbanization as much as contributing to India’s growth story is also causing enormous negative environmental externalities. The sustainability of the industrial economy can be ensured only if the issues of resource constraints, energy inefficiency and waste management are addressed. A circular economy model helps in mitigating the negative environmental externalities and also sustaining the growth of the economy. This study aims to analyze the inclusion of aluminium scrap in the Indian material flow process as part of the transition of aluminium production towards circular economy. The production forecasting of aluminium for the years 2010 to 2030 is undertaken using a modified IPAT model and then the total scrap ratio of production for the same years is obtained. According to the forecasts, India’s production of aluminium will increase from 1.3 million MT in 2010 to 5.6 million MT in 2020 and 6.6 million MT in 2030. Scrap ratio of aluminium production increases from 0.34 in 2010 to 0.44 in 2020 but decreases to 0.37 in 2030. India relies heavily on imported scrap to meet its production requirements, using only domestic depreciated aluminium scrap in calculation reduces the scrap ratio to 0.05 in 2010 and 0.06 in 2030.