Cutting PM2.5 pollution could unlock $220bn in economic gains by 2030.
Cleaner air can generate jobs, improve health outcomes and boost productivity nationwide.
Air pollution remains a major economic and public health risk for India.
India Could Gain $220 Bn by 2030 by Cutting Air Pollution, Says Report
Report highlights major economic, health and employment gains from reducing air pollution in India
Smog envelops Delhi, highlighting the economic and health costs of air pollution.
Summary
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India could unlock as much as $220bn in economic gains by 2030 by curbing air pollution across its major polluting sectors, according to the new report published by Dalberg.
The report also revealed that improvement in air quality levels by cutting fine particulate matter (PM2.5) by nearly 20% could drive an additional $85bn in economic gains to businesses from improved health, productivity and consumer spending. This, in return, could help avoid about 10mn disability-adjusted life years (DALYs).
Adopting cleaner solutions could result in the creation of about 1.4mn jobs over five years, which is equivalent to about 6% of India’s total unemployed population.
According to the 2021 Lancet report, 1.7mn deaths, which translates to about 18% of total annual deaths, could be attributed to air pollution in 2019.
“A 2019 study by Dalberg and the Clean Air Fund in partnership with Confederation of Indian Industry, estimated the economic loss due to air pollution at $95 billion (or 3% of 2019 GDP) — primarily from productivity losses, reduced consumer footfall, absenteeism, and premature deaths,” stated the report.
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The report emphasised that reframing clean air as a driver of growth and resilience can mobilise new coalitions, attract capital flows and embed clean air as India strives to achieve net-zero emissions by 2070.
Clean air is not only a public health priority but also an economic imperative, Jagjeet Sareen, partner and India head, Dalberg Advisors, wrote on LinkedIn, adding, “This analysis highlights where targeted investments can deliver measurable returns for businesses, workers, and the broader economy.”
Cost of Air Pollution
Air pollution takes a heavy toll on India but a 2025 World Bank report echoed a similar finding that changes to policies can help to cut number of people exposed to high levels of PM2.5 (fine particulate matter of 2.5 micrometers or less in diameter).
“Improving air quality is an urgent health and economic imperative,” Axel van Trotsenburg, Senior Managing Director, World Bank said in a news release.
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According to a March 2025 World Bank report, outdoor pollution kills around 5.7mn lives annually, with 95% of deaths occurring in low- and middle-income countries and accounts for a loss equivalent to about 5% of global GDP, due to health impacts, lost productivity and reduced life expectancy.