The Billion Dollar Haze

 

The past decade has seen India’s rapidly growing economy facing a relatively new and formidable foe, air pollution. While we may know of its hazardous health consequences, its degrading effect on India’s economy is often overlooked. India has been ranked 8th on the list of countries with the worst air quality index. If the right action isn’t taken soon, along with people we might see the economy gasping for its breath too.

 

State of India’s air quality and its effect on GDP-

 

PM 2.5 and PM 10 are the most commonly used measurement scales to gauge the level of pollution. PM 2.5 refers to the concentration of microscopic particles less than 2.5 microns in diameter and PM 10 refers to the concentration of particles less than 10 microns in diameter.  According to WHO, the sustainable pollution metrics for safe human inhabitation are:

PM 2.5 –  10 mg/m3

PM 10 –  20 mg/m3

However, the top ten cities in India have at least fifteen times more particulate matter, for example, Delhi, has a PM 2.5 in the range of 150-410 and PM 10 of 90-700. Each year, air pollution costs Indian businesses nearly INR 7 lakh crores translating to 3% of its GDP. Research has found the highest level of per-capita economic loss in Delhi (6% of its GDP) due to air pollution. Such expenses cost dearly to a fast-growing economy like India.

 

Source: World Bank report titled ‘Air Pollution Reduces Economic Activity: Evidence from India’.

 

Impact on labour productivity-

 

Air pollution has a considerable impact on worker productivity. A study called “Air pollution and its impact on business: The silent pandemic” has revealed that Indian workers take 1.3 billion days off work every year because of the adverse health effects of air pollution. Thus, India could have gained around $6 billion in business revenue had it taken action to curb pollution-induced absenteeism in workers. People working in construction, and other labour-intensive industries face the brunt of its deadly impact. Employers may see a significant decrease in attendance on days when air pollution reaches hazardous levels. Employees who continue to work despite pollution face productivity losses caused by irritation, weakness, and decreased cognitive ability. All these factors contribute to declining economic output.

 

(The IT sector loses USD 1.3 billion due to pollution-induced productivity loss per year)

Impact on agricultural yield-

 

India is a predominantly agrarian economy. Around 70% of the people in rural areas are dependent on agriculture and allied practices for their income. India is the largest producer and consumer of pulses in the world. With such massive numbers, minimising crop losses is of paramount importance. However, the fertile Indo-Gangetic plain has been plagued with rising air pollution in recent years, reducing crop yields. This is because aerosols lessen the amount of sunlight that reaches the plants by scattering it. Tropospheric Ozone, in particular, reduces photosynthesis and stunts plant growth. Another critical issue is the stubble burning practised by farmers in the states of UP, Punjab, and Haryana. Approximately 35 million tons of crop waste each year is burnt by them. This causes air pollution to skyrocket to astonishing levels (around 400 AQI)  in Delhi and nearby regions. The resultant heat from burning also penetrates the soil, raising the mean temperature and killing bacteria and fungi essential to maintain fertility. Climate change threatens food security not just in India but all over the world. Although India is self-sufficient in terms of food production, the heavy agricultural losses, if prevented, can go a long way in mitigating hunger and providing much-needed financial stability to farmers. 

 

Impact on the tourism sector-

 

India due to its rich cultural heritage and natural beauty, attracts many tourists throughout the year. The tourism sector contributes about 4.6% of India’s GDP. The polluted air has a very adverse impact on this sector. It has a direct influence on the health and well-being of tourists. Moreover, it may cause smog, diminishing the visual appeal and the attractiveness of the iconic landmarks and impacting the overall visitor experience.

The hospitality sector experiences reduced bookings and footfall. Transportation services such as airlines and small businesses that rely on tourism, also witness a huge decrease in sales. Additionally, a tarnished environmental reputation due to air pollution can have lasting effects as it causes a decline in tourism even after air quality improves. 

Impact on healthcare expenditure-

 

The rise in pollution-related illnesses leads to an increased demand for healthcare services, resulting in higher healthcare expenditure. Prolonged exposure to air pollution, particularly PM2.5, is linked to respiratory diseases like asthma and heart ailments. Certain demographic groups, such as children, the elderly, and individuals with pre-existing health conditions, are easily vulnerable to its harmful impacts. It underscores the importance of addressing air quality issues to mitigate the economic burden associated with pollution-related health problems. 

Countermeasures taken by the government-

 

To control the air pollution, the Indian government has taken a lot of measures like:

 

1. Laws and regulations have been implemented to restrict the production and discharge of gases and emissions from vehicles and industries, such as the odd-even policy, regulation of emission standards, policies to attract investment in Electric vehicles, etc.

2. Encouraging the use of solar energy and reducing the dependence on fossil fuels to minimise air pollution that is caused during the process of power generation. For example, India has taken an exemplary initiative to build the world’s largest solar park in Rajasthan which powers around 4.5 million households.

3. The Delhi government is also working on using innovative technology like cloud seeding and artificial rain in collaboration with IIT Kanpur to mitigate intense haze and smog.

4. National Green Hydrogen Mission was also launched earlier this year through which it aims to 

• Make India a net exporter of green hydrogen

• Reduce CO2 emissions by approximately 50 million metric tons 

Conclusion-

India has ambitious plans for itself in the years ahead. It aims to become a 5 trillion dollar economy and a developed country by 2047. To achieve this goal, it needs to take active steps towards encouraging a sustainable mindset. Air pollution is turning out to be an unfortunate Achilles’ heel in India’s growth trajectory. The Government and industry leaders must come forward and take due initiative to pull India out of this mess for the benefit of all. With proper planning and implementation, healthy skies and a thriving economy is not a far-fetched dream but achievable reality.