India’s pollution is becoming an economic roadblock
The Economist
February 15, 2026
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India’s pollution crisis is increasingly seen as a significant barrier to its economic development. While the nation has set ambitious goals to reduce emissions and improve air quality, critics argue that the government’s lack of effective action is hampering progress. The issue is particularly acute in cities like Delhi, where pollution levels often reach hazardous levels, causing severe health problems and economic losses. Despite temporary improvements during spring—when air quality briefly improves—the long-term effects of poor air quality continue to harm public health and productivity.
The economic impact of pollution is profound. Poor air quality leads to higher healthcare costs due to respiratory diseases, reduced life expectancy, and lower worker productivity. Industries are also affected, as companies face increased expenses from sick leave and equipment damage caused by pollutants. Additionally, the tourism sector suffers as foreign visitors avoid polluted areas, leading to lost revenue in key sectors like travel and hospitality.
From a business perspective, addressing pollution is not just an environmental imperative but a critical economic priority. Companies operating in India may face stricter regulations, higher costs for compliance, or reputational damage if they fail to address environmental issues. Furthermore, ongoing pollution could deter foreign investment, as global businesses increasingly prioritize sustainability and environmental responsibility. For India to achieve its economic goals, it must tackle the root causes of pollution with decisive action and innovative solutions.
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Originally published on The Economist on 2/15/2026