Air Pollution Costs Indian Businesses $95 Billion Each Year That Is 150 Per Cent Of India’s Healthcare Budget: Report

New Delhi: Air pollution costs Indian business about 95 billion dollars (about Rs 7 lakh crore) every fiscal year, around 3 per cent of India’s total GD P, a major research report shows. The cost is equal to 50 per cent of all tax collected annually or 150 per cent of India’s healthcare budget. The findings in the report undertaken by Dalberg Advisors in partnership with Clean Air Fund and the Confederation of Indian Industry (CII) add urgency to tackling air pollution by outlining that it imposes heavy economic costs as well as devastating health impacts.

Also Read: State Of India’s Environment: Our Air, Water, Land Have Become More Polluted Between 2009 And 2018, Says Centre For Science And Environment Study

Dalberg estimate that India’s workers take 1.3 billion days off work annually because of the adverse effects of air pollution on their health, amounting to 6 billion dollars in lost revenue. Air pollution has also been shown to have significant effects on workers’ cognitive and physical performance, lowering their on-the-job productivity and thereby decreasing business revenues by up to 24 billion dollars.

Further impacting the national economy, the report found that lower air quality also reduces consumers’ willingness to venture out of their homes, leading to lower footfall and ultimately 22 billion dollars less revenue for consumer-facing businesses.

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India had 1.7 million premature deaths from air pollution in 2019, 18 per cent of all deaths in India, a figure that is projected to increase by 2030, making India a major contributor to the global economic cost of premature mortality. In economic terms, the lost working years cost the Indian economy 44 billion dollars in 2019.

The report further shows that India’s IT sector, the source of 9 per cent of the country’s GDP and a magnet for foreign investment, is disproportionately affected, losing 1.3 billion dollars due to pollution-induced productivity loss per year. If air pollution continues to increase at currently projected rates, this figure could nearly double by 2030. India has grown to become the world’s fifth most polluted country in the last decade and has 21 of the world’s 30 most polluted cities. As India’s median age rises from 27 in 2019 to 32 in 2030, vulnerability to air pollution will increase as mortality due to air pollution-linked pulmonary problems and lung cancer will grow at an accelerated pace, as these illnesses tend to affect the elderly harder.

Also Read: World Air Quality Report Highlights: India’s Air Quality Improved In 2020, But 22 of 30 World’s Most Polluted Cities Are In India

Gaurav Gupta, Partner and Asia Director for Dalberg, said the report shows how air pollution affects the overall health of businesses and the economy. While the government has taken aggressive measures to address the issue, the emphasis on air pollution across the globe has continued to be on its public health implications.

It has now become important for Indian business to include air emissions in their profit and loss statements. Clean air is a pre-condition for businesses to thrive – and for India to realise its vision of becoming a 5 trillion dollar economy by 2025. Achieving this goal would require industry leaders to take more ownership and become advocates in the movement for cleaner air, he said.

Also Read: Delhi Has Taken More Air Pollution Control Measures Than Any Other City But There Is Still A Long Way Ahead: CSE Report

Seema Arora, Deputy Director General at CII, said it is clear that individual businesses – and their employees – have a direct stake in improving air quality. “While there is a need of a lot of thinking to be done here, the business solutions to this business crisis as per our findings include ‘greening’ business operations and supply chains, adopting renewable energy technology, mitigating emissions through CSR activities, and campaigning for more ambitious pollution policies,” she said.

We believe that through active and sustained collaboration between the public and private sectors, bluer skies and a healthier economy can soon become India’s reality, added Ms Arora.

The report notes that air pollution has a substantial impact on India’s economy, alongside the health and environmental impact and that by improving its air quality, India will not just be healthier but also wealthier.

Also Read: Government Has Taken Number Of Steps To Bring Down Pollution In Delhi: Union Environment Minister

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

NDTV – Dettol Banega Swasth India campaign is an extension of the five-year-old Banega Swachh India initiative helmed by Campaign Ambassador Amitabh Bachchan. It aims to spread awareness about critical health issues facing the country. In wake of the current COVID-19 pandemic, the need for WASH (Water, Sanitation and Hygiene) is reaffirmed as handwashing is one of the ways to prevent Coronavirus infection and other diseases. The campaign highlights the importance of nutrition and healthcare for women and children to prevent maternal and child mortality, fight malnutrition, stunting, wasting, anaemia and disease prevention through vaccines. Importance of programmes like Public Distribution System (PDS), Mid-day Meal Scheme, POSHAN Abhiyan and the role of Aganwadis and ASHA workers are also covered. Only a Swachh or clean India where toilets are used and open defecation free (ODF) status achieved as part of the Swachh Bharat Abhiyan launched by Prime Minister Narendra Modi in 2014, can eradicate diseases like diahorrea and become a Swasth or healthy India. The campaign will continue to cover issues like air pollution, waste management, plastic ban, manual scavenging and sanitation workers and menstrual hygiene.