From Linear to Circular: A Crucial Shift for Indian MSMEs in Global Trade

The traditional model of business, often referred to as the "take-make-dispose" linear economy, is facing a fundamental transformation. This model relies on the constant extraction of virgin resources, production of goods, and disposal of waste after a single use. However, the limitations of this approach are becoming increasingly evident – resource depletion, environmental pollution, and overflowing landfills are pushing businesses towards a more sustainable alternative: the circular economy. This new approach prioritizes keeping products and materials in use for as long as possible, minimizing waste and maximizing resource efficiency. This shift has significant implications for the global trade cycle, impacting everything from the types of goods traded to the way supply chains are managed.

Why the Shift? Compelling Reasons for Embracing Circularity

Several factors are driving the transition towards a circular economy:

• Resource Scarcity: Global demand for raw materials is constantly rising, with finite resources like metals and minerals facing depletion. The circular economy prioritizes resource conservation by extending the lifespan of materials and creating closed-loop systems, reducing dependence on virgin resources.
• Environmental Concerns: Linear production generates significant waste, contributing to environmental pollution and climate change. Plastic pollution in oceans, greenhouse gas emissions from manufacturing, and overflowing landfills are stark reminders of the unsustainable nature of the "take-make-dispose" model. The circular economy aims to minimize waste generation through design, repair, and remanufacturing, promoting a cleaner and healthier planet.
• Economic Opportunities: While seemingly counterintuitive, the circular economy presents significant economic benefits. Businesses can explore new business models like product-as-a-service, where they retain ownership and focus on product longevity. Additionally, remanufacturing, repair services, and efficient waste management offer new revenue streams. These initiatives can also reduce production costs and improve resource efficiency.
• Consumer Demand for Sustainability: Consumers are increasingly conscious of the environmental impact of their choices. They are actively seeking sustainable products and services, putting pressure on businesses to adopt greener practices. The circular economy aligns perfectly with this growing demand, allowing businesses to cater to environmentally conscious customers and build brand loyalty.
• Regulatory Pressures: Governments around the world are enacting stricter regulations on waste management, resource extraction, and product safety. These regulations incentivize businesses to adopt circular practices to comply with environmental standards and avoid penalties.

In order to make the MSME aware of the changing global trade patterns, it has become imperative for businesses to change their stance and start shifting gears to embracing Circularity.

While circular economy (CE) principles offer a path towards sustainability, implementing them can pose challenges for businesses. Here's where automation and smart manufacturing practices come in – acting as a powerful fillip for companies embracing CE norms. Though Automation has been the buzz word in the industry circles, the adoption of Automation in the Indian MSME sector is at a very nascent stage. There is a definite need to increase the adoption of automation and related aspects among the Indian MSMEs.

With the same notion, EEPC India organizes a session on the various changes a business will face to embrace circularity along with adopting various automation and smart manufacturing procedures. Also, what all necessary actions Indian MSMEs should take in order to be a constant stake holder to the global value chain.

This program aims to equip Indian MSMEs (Micro, Small and Medium Enterprises) with the knowledge and tools to navigate the evolving global working environment shaped by circular economy norms, automation, and Industry 4.0 principles.

Objective of Conference

• Raise awareness of the circular economy, automation trends, and Industry 4.0 technologies.
• Understand the impact of these changes on the global business landscape and the opportunities they present for MSMEs.
• Identify practical strategies for MSMEs to adopt circular practices, improve automation, and leverage Industry 4.0 solutions.
• Facilitate networking and knowledge sharing among MSMEs and industry experts.
• Make Indian MSMEs future ready.
• Highlight latest sourcing requirements in International market
• Latest developments and implementations in the Standards, Quality & Non-Tariff Measures by various nations.
• Highlight emerging investment & trade policies
• Highlight Investments by leading engineering MNCs in India
• Highlight emerging trade and policy landscape across major and potential export markets.

Expected outcome of the conference

• Identify key sectors and markets for the MSMEs in view of the latest concepts in international market related to circular economy and automation
• Make MSME aware about the latest international trends in circular economy and sustainability
• Make MSME aware about the international trade practices
• Identify latest trade and technology trends which are shaping global value chains for the MSME sector.
• Sensitize various initiatives and steps taken by the Government for the engineering sector and MSMEs to boost exports and achieve US$ 400 Billion targets
• Identify latest developments in the niche and sunrise engineering sectors such as Green & Renewable Energy, Medical Devices, Electrical Machinery & Equipment’s etc.
• Identify areas where Indian MSMEs need to focus for building trade capabilities to retain competitiveness in global markets.