Being the second largest agrarian-based economy India generates the largest quantities of agricultural wastes including crop residues. India is one of the most culturally varied nations in the world and is home to close to 1.4 billion people. With a greater than 15% proportion of the Gross Domestic Product (GDP), agriculture is the foundation of the Indian economy. However, there is limited discussion on the handling of agricultural waste and receives scant attention in the literature. The issue is, India faces major environmental challenges associated with agricultural industry, as these wastes are not as strictly controlled as the municipal solid waste (MSW). The aim of this study is to understand how much crop residue is wasted and to identify a circular economy strategy based on the current level of agricultural waste management in India and its environs for alternative purposes of environmental stewardship and sustainability in the context of the 2030 Agenda implementation. This paper also discusses successful outcome of an experiment conducted by the authors of VIT (Vellore Institute of Technology), Vellore, Tamil Nadu, India, to demonstrate how agricultural residues, particularly paddy straw and maize stalks, can be re-purposed for mushroom cultivation, resulting in higher yield.