The exponential growth in plastic consumption and subsequent waste generation in India has emerged as a significant environmental and socio-economic challenge. Among the various concerns, microplastics tiny plastic particles resulting from the breakdown of larger plastic debris pose serious and often overlooked risks to ecosystems and human health. These pollutants infiltrate air, water, and soil systems, accumulating through food chains and impacting biodiversity, agriculture, and public well-being. This review critically examines the current plastic production and consumption patterns in India, tracing the sources, pathways, and impacts of microplastics. It highlights the multifaceted challenges posed by microplastic pollution, ranging from environmental degradation to economic losses and public health threats. The manuscript underscores the urgent need to transition toward a sustainable, circular plastic economy. It evaluates key strategies such as Extended Producer Responsibility (EPR), waste valorisation, technological innovations, and robust policy frameworks. By integrating global best practices and Indian case studies, the review presents actionable insights for policymakers, industries, and civil society. A well-structured circular economy can significantly curtail microplastic proliferation while fostering economic resilience, resource efficiency, and long-term environmental sustainability in India.