‘Affects productivity, raises healthcare costs’: Gita Gopinath warns pollution hurts Indian economy more than tariffs

New Delhi: Pollution is emerging as a far greater threat to India’s economic growth than global tariffs, former International Monetary Fund (IMF) chief economist Gita Gopinath said on Wednesday. Speaking at the World Economic Forum, Gopinath warned that environmental degradation is silently dragging down productivity and investor confidence.

“Pollution is a challenge in India, and its impact on the economy is far more consequential than any impact of tariffs,” she said adding that economic costs of pollution in India outweigh the impact of tariffs imposed so far.

‘Pollution affects productivity, raises healthcare costs’

Gopinath, a professor at Harvard University, said pollution affects productivity, raises healthcare costs and reduces overall economic activity, making it a serious but often underappreciated constraint on growth.

“The real costs of pollution are not merely environmental. They are deeply intertwined with economic growth, productivity and the health of citizens,” she said.

Gopinath, citing a World Bank study of 2022, said pollution causes nearly 17 lakh deaths in India every year, imposing a heavy economic burden on families and the workforce.

Pollution also affects India’s attractiveness as investment destination

She added that pollution also affects India’s attractiveness as an investment destination. “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.

Gopinath also urged urgent action, adding pollution control must be treated as a national mission and addressed on a “war footing”, alongside reforms such as deregulation, to safeguard India’s long-term economic prospects. “Tackling pollution must become a top national priority. It needs to be treated as a mission for India,” she said.