The Indian healthcare industry is expanding quickly, creating a large number of jobs and bringing in a substantial amount of money. But this expansion has also resulted in a lot of medical waste being produced, which presents serious environmental problems. In order to solve these problems, the article highlights the necessity of circular economy techniques, with a particular emphasis on reduce, reuse, and recycle methods. Wastes from infectious, pathological, sharp, chemical, pharmacological, and radioactive sources are all produced by the healthcare industry. Depletion of resources, air pollution, and contamination of water and soil are examples of environmental consequences. The industry’s current waste management situation is typified by a monotonous enforcement of regulations. Reducing waste production, effectively managing resources, raising awareness, and implementing sustainable technologies are some examples of prudent practices that could benefit the industry. The absence of infrastructure, financial resources, and awareness are obstacles in garbage management. There is also discussion of government initiatives and the possibility of the healthcare industry implementing circular economy concepts for sustainable development.