Developing Sustainable Circular Economy Through Sustainable Manufacturing Practices—Evidence from Small Indian Firms

The notion of circular economy model and the resulting shift in consumer behaviour are compelling the small manufacturing industry to prioritise sustainable circular supply chains along with policy initiatives. Buyers and investors consider environmentally friendly requirements in addition with how the small firms do business under social and economic concerns. This article presents a framework comprising four pillars of sustainable circular economy of sustainable supply chain, policy management, and manufacturing practices. The purpose is to provide small manufacturers with relevant strategies that can be incorporated into their business activities, facilitating their transition towards a circular economy. The analysis pinpointed the operation of sustainable policies in the context of environmental, social and governance approaches has a significant effect on practices of sustainable manufacturing through the identified technologies of lean manufacturing and servitization (t = 4.28) and the r2 values confirmed that all the four hypotheses were accepted. The findings of the study strongly correlated the various sustainability-based strategies and methods, including the sustainable supply chains with reverse logistics and sourcing virgin recycled resources, the environmental, social, and governance practices to reach sustainability, servitization, and lean production for achieving sustainable manufacturing among Indian small paper bags firms. These initiatives can work together to create a sustainable circular economy of generating socio-economic and environmental value in the mother nation.