Vantage | How smog could affect India's growth story

In recent years, India has faced a growing crisis that extends beyond the health implications of pollution. Smog, a perilous combination of smoke and fog, has cast a shadow over the nation and is now affecting India’s growth and international image. Smog’s impact on Brand India The link between pollution and its detrimental effects on India’s image and economic prospects becomes evident when we examine some notable incidents. Back in 2015, then-US president Barack Obama visited India during the peak smog season in New Delhi. The headline during his visit read, “Mister President, the World’s Worst Air Is Taking 6 Hours Off Your Life.” This not only drew attention to India’s alarming air quality but also overshadowed a crucial moment in India-US relations. Even Michelle Obama, the First Lady, avoided most public events during their stay due to pollution. This highlighted the adverse effects of smog on high-profile events and dignitary visits, which are pivotal for India’s international reputation. The Cricket World Cup, a global sports extravaganza, also bore the brunt of India’s pollution problem. In recent headlines, we see phrases like “Choking Smog Shrouds Cricket World Cup,” “Bangladesh Play Sri Lanka Amid Very Unhealthy Pollution in New Delhi,” and “Air Pollution Sparks Alarm, Dims World Cup Cheer in India.” These headlines not only marred the joy of the tournament but raised questions about India’s ability to host major international events. Economic consequences of smog The smog issue extends far beyond symbolism. Approximately 50 per cent of India’s GDP relies on outdoor sectors like construction and farming, compared to just 25 per cent in Europe. This stark contrast highlights the vulnerability of these sectors to poor air quality. When the air is polluted, workers’ productivity drops, which inevitably has an impact on a significant portion of India’s economy. Estimations suggest that air pollution costs Indian businesses around $95 billion annually, equivalent to about 2.5 per cent of the GDP. Furthermore, the World Bank warns that by 2030, India’s GDP could face a risk of up to 4.5 per cent due to lost labour attributed to rising heat and humidity, which is exacerbated by pollution. These forecasts underscore the dire economic implications of neglecting air quality. Investor sentiment and international comparisons India’s struggle with pollution has also raised concerns among investors and international corporations. Numerous studies have linked China’s air quality to investment decisions. A comprehensive study looking at over 2,000 firms in 230 Chinese cities found that higher pollution levels correlate with poor investments, with a margin of 7-8 per cent. This indicates that investors are increasingly cautious about countries with severe air quality problems. Tourism, a significant source of revenue for India, is also adversely affected. Iconic landmarks like the Taj Mahal, a symbol of India’s rich heritage, are often shrouded in smog, deterring tourists and posing health risks. Falling ill during a vacation can ruin the entire experience and discourage future visits. India in the global spotlight India’s prominence in the global arena has grown in recent years with the country hosting events like the G20 Leaders’ Summit. However, if such events were held during months of severe smog, the headlines and outcomes could have been dramatically different. The international community and foreign governments need to recognise the issue’s severity and its impact on India’s image and reputation. Pollution isn’t just a health hazard; it affects economic output, investor confidence, and the nation’s global image. To tackle this problem, leaders must first admit that it is a grave issue that needs urgent attention. Views expressed in the above piece are personal and solely that of the author. They do not necessarily reflect Firstpost’s views. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.