Circular economy index evaluation: Global trends and applications in developing countries

Abstract The circular economy (CE) promotes sustainable development through resource efficiency, waste reduction, and material reuse. While CE frameworks have been widely studied in developed countries, their application in developing countries faces challenges related to infrastructure, policies, and socio‐economic conditions. This study utilizes systematic literature review (SLR), examining 110 peer‐reviewed articles (2019–2024) through the PICOC framework and PRISMA methodology. The results show that India (14 publications) and China (10 publications) are the most active contributors for the topics among developing countries. Most studies focus on environmental indicators, while social dimensions such as informal sector engagement remain underexplored. Key barriers include data limitations, fragmented policies, and weak infrastructure. This review recommends the development of localized CE indicators that incorporate informal sector dynamics and policy harmonization. The novelty of this study lies in mapping CE index trends in developing countries and proposing an inclusive, context‐sensitive framework for future CE assessment and policy formulation.