Challenges in the implementation of circular economy in manufacturing industry

Purpose: The circular economy concepts are useful for resource conservation, eliminating waste and enhancing the efficiency of production to improve the sustainability of the system. The application of CE in Indian manufacturing industry is in nascent stage. India’s manufacturing sector significantly contributes to the economic development of the nation; therefore, this study aims to identify and analyze the sustainability related challenges faced during the implementation of the circularity concept. Design/methodology/approach: Comprehensive survey of literature and the use of Pareto analysis yield ten significant challenges which are further analyzed using fuzzy-Decision-Making Trial and Evaluation Laboratory approach. Findings: Findings revealed that noncompliance of environmental laws, revenue generation, design issues owing to technological limitations and less preference to refurbished and reused product are some of the major challenges to the CE practices in the manufacturing industry. Research limitations/implications: The results will help the researchers and practitioners in strategic decision-making for the improved application of circularity in the production process. Originality/value: This paper contributes to the identification and prioritization of sustainability-related challenges faced during the implementation of a novel concept by a developing economy.