IMPLEMENTATION OF INDUSTRY 4.0 AND THE CIRCULAR ECONOMY TO ACHIEVE SUSTAINABLE DEVELOPMENT: THE CASE OF THE INDIAN MANUFACTURING INDUSTRY

In the present scenario, Industry 4.0 concepts have gained significant attention due to their emphasis on digital transformation, data transparency, and sustainable supply chain practices. Industry 4.0 is leveraged with advanced technologies that provide real-time data collection, enhance process efficiencies, enable proactive decision-making, and develop communication across the entire supply chain. A circular economy is an economic system that aims to eliminate waste and the continual use of resources by establishing closed-loop systems where products, materials, and resources are kept in use for longer periods. This integration contributes to a sustainable energy economy and promotes integrated energy solutions by reducing carbon emissions, waste generation, and environmental damage, helping to achieve the Sustainable Development Goals. A literature review revealed a lack of comprehensive frameworks providing a holistic perspective on the performance of Industry 4.0 and the circular economy in the context of the Indian manufacturing industry. Therefore, the present study aimed to analyze the impact of Industry 4.0 technologies on circular economy practices in achieving Sustainable Development Goals along with the triple bottom line perspectives of sustainability. The data for the study were collected through an online survey and from expert opinions. A questionnaire was established and sent to 250 Indian manufacturing companies. A total of 98 responses were received and considered appropriate for the study. A structural equation modeling partial least squares path modeling technique was utilized for descriptive analysis and hypothesis testing using Smart PLS 3.0 software. The results of the study show that the Internet of Things, big data, and cyber-physical systems are the major driving forces that may improve the economic, environmental, and social performance of the Indian manufacturing industry. The study offers a major contribution to industrialists and researchers by providing empirical evidence on the positive impacts of these technologies and offering a roadmap for integrating Industry 4.0 and circular economy principles into existing practices. This study is novel in its approach by integrating these two concepts (Industry 4.0 and the circular economy) within the Indian manufacturing context, providing a unique perspective on sustainable development.