On November 25, 2024, stock markets in India experienced a significant rise following a decisive victory for Prime Minister Narendra Modi's Bharatiya Janata Party-led coalition in Maharashtra, the country's wealthiest state. The NSE Nifty 50 Index surged by 1.7%, reaching 24,312.50, buoyed by positive regional market trends and investor optimism regarding the potential impact of new U.S. Treasury Secretary Scott Bessent on Treasury yields and tariffs.
In contrast, northern India is grappling with severe air pollution, which is adversely affecting public health and the economy. Delhi, frequently cited as one of the most polluted cities globally, is enveloped in smog every winter due to vehicle emissions, industrial discharge, and crop burning in neighboring states. The concentration of harmful PM 2.5 particles in the air exceeds World Health Organization guidelines by fifty times, posing serious health risks, including cancer.
Experts warn that the economic toll from pollution in India is substantial. Reports indicate that air pollution costs the nation approximately $95 billion annually, equivalent to nearly 3% of its GDP. The impact of pollution manifests in decreased productivity, increased healthcare expenses, and premature mortality, with Delhi alone losing 6% of its GDP to pollution-related issues.
The tourism sector is also suffering, particularly during the winter months when international visitors typically arrive. Local business operators express concern that the persistent haze is damaging India’s image as a travel destination. Despite some government measures aimed at curbing pollution, critics argue that these efforts are insufficient. A World Bank report from 2023 highlighted the micro-level effects of pollution on the macro-economy, suggesting that a reduction in pollution over the past 25 years could have led to a 4.5% higher GDP by the end of 2023.
Emergency measures such as school closures and construction halts have been implemented to address pollution spikes, but these actions also incur economic costs. Experts emphasize the need for comprehensive and long-term strategies to mitigate pollution, warning that without effective intervention, the situation is likely to worsen.