Pollution is emerging as one of the most serious threats to India’s economic trajectory, potentially outweighing the damage caused by global trade tensions and tariffs. Speaking at a World Economic Forum session organised in collaboration with the India Today Group, Harvard University professor Gita Gopinath warned that pollution is silently draining India’s growth potential by affecting human lives, productivity, and investor confidence.
Gopinath said that conversations about business development and economic growth often revolve around trade policy, regulatory reforms, and market access. However, she argued, the impact of pollution rarely receives the attention it deserves, even though its economic consequences are far more severe than those of tariffs imposed so far. “Pollution is a challenge in India, and its impact on the economy is far more consequential than any impact of tariffs imposed so far,” she said, highlighting how deeply environmental conditions are intertwined with economic outcomes.
The professor pointed out that pollution affects India’s workforce directly, reducing productivity through health issues, increasing healthcare costs, and lowering overall economic activity. The human toll is staggering, she said, citing a World Bank study from 2022 which estimates that pollution causes nearly 1.7 million deaths in India every year—roughly 18% of the country’s total deaths. This loss of life, Gopinath stressed, translates into an enormous economic burden that affects families, the workforce, and long-term development prospects.
Beyond domestic concerns, Gopinath said pollution is also a critical factor for international investors considering India as a manufacturing and business hub. “From an international investor’s point of view, if you are thinking of setting up operations in India and living there, the environment matters,” she said. Poor air quality and living conditions can deter investment, especially when health risks become a factor in decisions about where to establish operations. The issue is equally relevant for Indians who live and work in heavily polluted cities, she added, pointing out that daily exposure to harmful conditions can undermine morale, productivity, and long-term human capital.
The economist called for a decisive national response, urging India to treat pollution control as a top priority and adopt a “mission mode” approach. She said tackling pollution should be as urgent as deregulation in terms of policy action, arguing that India’s ambitions to become a global economic powerhouse will depend on cleaner cities and healthier living environments. In her view, addressing pollution is not only an environmental imperative but also a critical economic strategy to protect lives, support growth, and strengthen India’s appeal to global investors.
