Gita Gopinath: Pollution Costs India More Than Tariffs, Major Economic Drain

• Gita Gopinath highlighted at Davos that pollution is a greater economic problem for India than tariffs, impacting public health and the economy.
• Air pollution causes significant economic drain, eroding household incomes, weakening businesses, and slowing overall economic growth.
• The Lancet estimates air pollution costs India roughly 9% of its GDP annually, exceeding combined healthcare and education spending.
• Businesses like Shoppers Stop report reduced sales due to lower footfalls during high pollution, with a 2021 study estimating a $95 billion annual cost to Indian businesses.
• Pollution leads to premature deaths, lost productivity, increased healthcare costs, and reduced consumer spending, acting as a hidden tax on Indians.

Why It Matters: Pollution is a critical economic issue for India, costing more than tariffs and demanding urgent policy action.