Air Pollution and Its Impact on Business: The Silent Pandemic

India faces a serious air pollution crisis. Over the last decade, India has emerged as the world’s fifth most polluted country and is home to 21 of the world’s 30 most polluted cities. While the government has taken ambitious remedia steps, such as the launch of the National Clean Air Programme and its target of reducing PM2.5 pollution by 20-30% by 2024, the discourse on air pollution in India and around the globe has tended to focus on its public health implications.

This study’s primary purpose was to add another dimension to our understanding of air pollution: its impact on businesses and the economy. This study undertakes a rigorous quantitative analysis of four pathways through which pollution decreases businesses’ profitability; premature mortality, presenteeism, absenteeism and consumer footfall. It uses
various data sources, including air pollution data, historical traffic data, pharmacy sales data and data premature mortality, to paint a holistic picture of pollution’s business cost. While previous studies have looked at isolated pieces of this puzzle at the level of individual firms or sectors in other geographies, this is the first report to estimate the business cost of pollution for India comprehensively.

This study ultimately aims to motivate businesses and policymakers to become more active advocates for clean air by showing how much the economy and society stands to gain. The report is premised on the principle that the private sector can and should join forces with government, researchers and civil society to improve air quality successfully.