Pollution bigger threat to Indian economy than global tariffs: Gita Gopinath

Gita Gopinath (Courtesy: Reuters photo)

Gita Gopinath warns pollution poses a greater threat to India's economy than tariffs, impacting productivity and health. She urges urgent action, citing 1.7 million annual deaths, as the Supreme Court seeks concrete plans from states to combat air pollution.

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Gita Gopinath, former chief economist of the International Monetary Fund (IMF), believes the impact on pollution has far more consequences on the Indian economy than tariffs. Pollution, she said, is silently emerging as one of biggest threats to India's economic growth.

"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 at the World Economic Forum.

Gopinath emphasised how pollution affects productivity, healthcare costs and overall economic activity, making it a silent but serious drag on growth.

"The real costs of pollution are not merely environmental ... They are deeply intertwined with economic growth, productivity, and the health of citizens," the Harvard University professor said.

Gopinath said that while tariffs often dominate debates, it is the environmental factors that need to be discussed because of their sustained and wide-ranging economic effects.

Stressing that pollution should be a top priority for India to safeguard its economic future, she said, "India has made progress in expanding its economy and improving infrastructure, but pollution remains a persistent challenge, particularly in major urban centers".

"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 added.

According to the former IMF chief economist, a 2022 World Bank study shows that pollution causes nearly 1.7 million deaths in India each year, accounting for roughly 18% of the country's total deaths.

Gopinath called for an urgent, war-like approach to tackle pollution. "Tackling pollution must become a top national priority. It needs to be treated as a mission for India," she said.

Meanwhile, the Supreme Court on Wednesday directed the Centre and the governments of Delhi, Punjab, Haryana, Uttar Pradesh and Rajasthan to submit concrete action plans for implementing a set of long-term measures proposed by the Commission for Air Quality Management (CAQM) to combat air pollution.