Circularization has been viewed as a core strategic instrument for achieving sustainable development. Along the same lines, applying circularization in an integrated rural livestock development project is essential considering the importance of biomass in the circular economy. However, the geoecological variations, community motivations for sustainability, availability of appropriate technology, and dynamics associated with the livestock product markets outline challenges for the circular economy in biomass-rich rural India. An impact assessment survey of an integrated rural livestock development project revealed an early stage emergence of the circular economy. The survey charted the important role of blended traditional and modern practices in livestock keeping along with biomass management through appropriate technologies conjoined with green value chain-based enterprises for monetizable incentivization. The impact assessment highlighted challenges such as affordability of modern technology, improper microenterprise management, and consumer awareness, which implied policy-based interventions for adequate circularization to ensure sustainable biomass, and allied livelihoods.