Air pollution costs Indian business 95 Billion USD each year

 Air pollution costs Indian business 95 Billion USD each year, major report shows

The report is the first to estimate the business cost of pollution in India, with the aim to motivate companies and policymakers to actively champion clean air

Air pollution costs Indian business about USD 95 billion (7 lakh crores) every fiscal year, around 3% of India’s total GDP, a major research report shows. The cost is equal to 50% of all tax collected annually, or 150% of India’s healthcare budget. The findings in the report, undertaken by Dalberg Advisors in partnership with Clean Air Fund and the Confederation of Indian Industry (CII) add urgency to tackling air pollution by outlining that it imposes heavy economic costs as well as devastating health impacts.

Dalberg estimate that India’s workers take 1.3 billion days off work annually because of the adverse effects of air pollution on their health, amounting to USD 6 billion in lost revenue. Air pollution has also been shown to have significant effects on workers’ cognitive and physical performance, lowering their on-the-job productivity and thereby decreasing business revenues by up to USD 24 billion.

 Further impacting the national economy, the report found that lower air quality also reduces consumers’ willingness to venture out of their homes, leading to lower footfall and ultimately USD 22 billion less revenue for consumer-facing businesses.

India had 1.7 million premature deaths from air pollution in 2019, 18% of all deaths in India, a figure that is projected to increase by 2030, making India a major contributor to the global economic cost of premature mortality. In economic terms the lost working years cost the Indian economy USD 44 billion in 2019.

The report further reveals that India’s IT sector, the source of 9% of the country’s GDP and a magnet for foreign investment, is disproportionately affected, losing USD 1.3 billion due to pollution-induced productivity loss per year. If air pollution continues to increase at currently projected rates, this figure could nearly double by 2030.

 India has grown to become the world's fifth most polluted country in the last decade and has 21 of the world's 30 most polluted cities. As India’s median age rises from 27 in 2019 to 32 in 2030, vulnerability to air pollution will increase as mortality due to air pollution-linked pulmonary problems and lung cancer will grow at an accelerated pace, as these illnesses tend to affect the elderly harder.

Speaking at the launch of the report, Mr. Gaurav Gupta, Partner, Asia Director, Dalberg, said, “This report shows how air pollution affects the overall health of businesses and the economy. While the government has taken aggressive measures to address the issue, the emphasis on air pollution across the globe has continued to be on its public health implications. It has now become important for Indian business to include air emissions in their profit and loss statements.  Clean air is a precondition for businesses to thrive – and for India to realise its vision of becoming a USD 5 trillion economy by 2025. Achieving this goal would require industry leaders to take more ownership and become advocates in the movement for cleaner air.”

 Ms. Seema Arora, Deputy Director General, CII, said, “As per the survey insights, interviews and data analysis that went into the preparation of this report, it is clear that individual businesses – and their employees – have a direct stake in improving air quality. While there is a need of a lot of thinking to be done here, the business solutions to this business crisis as per our findings include ‘’greening’’ business operations and supply chains, adopting renewable energy technology, mitigating emissions through CSR activities, and campaigning for more ambitious pollution policies. We believe that through active and sustained collaboration between the public and private sectors, bluer skies and a healthier economy can soon become India’s reality.”

The report notes that air pollution has a substantial impact on India’s economy, alongside the health and environmental impact and that by improving its air quality, India will not just be healthier but also wealthier.

Full report available here – http://bit.ly/airpollutioncosts

 

Do not depend on Chinese manufactured

“Do not depend on Chinese manufactured goods ; promote Swadeshi” - CREDAI urges upon its members

Standing in solidarity with the nation and as a mark of tribute and respect  to the Galwan valley martyrs, CREDAI, the apex body of the real estate sector, representing 20,000 developers Pan India, has urge upon its members not to depend on  goods manufactured in China and encourage usage of  Swadeshi products.

Elaborating further on the initiative Satish Magar, President, CREDAI National said, “We appeal to our member developers not to depend on Chinese goods and embrace “Swadeshi” or “Made in India” way of life and business. CREDAI requests all the 250 allied industries which are linked to the real estate sector to manufacture these products locally especially the ones which are currently being imported from China and support the economy at large.”

Due to COVID 19 there is a disruption in supply chain emanating from CHINA which led to delay in completion of projects. Local production and purchase will lead to reduced procurement time, minimal loss of production hours and increased employment opportunities. Most of the raw materials being used are already being manufactured by the MSME sector in the country. 

CREDAI is ready to extend its support to the local manufacturers for production of materials which are currently being imported and make a shift from Videshi to Swadeshi. The sector already employees more than 52 million workforce in the country and this  move will  further multiply  employment opportunities and give the required stimulus to the economy. Additionally this step will provide a boost to more than 250 allied MSME industries linked with the realty sector and  in turn will increase the overall contribution to the GDP.

REACTION TO UNION BUDGET

REACTION TO UNION BUDGET 2020

Apart from the GDP estimation of 10 percent being on higher side, we see a lot of positivity in the budget proposals tabled by Hon’ble Finance Minister Smt. Nirmala Sitharaman.

§  Major thrust has been given to the infrastructure industry, including railway infrastructure and railway connectivity. This will help them revive from the sluggishness in the economy and improve liquidity in the market.

§  The new education policy integrates education, skilling and employability. This will help address the prevailing employment issues.

§  The proposals to support MSME industry through National Logistic Policy, invoice financing facility and revising the audit limit to INR 5-cr from INR 1-cr is laudable

§  The manufacturing sector will also get a boost through the investment clearance cell and the already announced reduction in corporate tax to 15 percent

§  Introduction of smart electricity meters will help the consumers and improve the efficiency of DISCOMS

§  Massive digital push by the government through fiber net connecting villages will add value to rural lifestyle

§  Announcement of 112 hospitals will definitely play a major role in bridging the gap between healthcare requirement and availability

§  The conversion of criminal to civil liabilities on Companies Act matters will give confidence to Corporate

§  3.5 lakh crore to public sector companies will help renew the Banking sector and improve the liquidity in the market

§  Marginal tax benefits to tax payers will provide decent relief to the common man

§  Abolition of dividend distributed tax will help the market

The budget indicates that it’s a good time for companies to go for expansion and create more employment, which calls for wider compliance requirement. With these forward looking proposals, Aparajitha aims to grow by 20 percent in the coming fiscal.

NAGARAJ KRISHNAN

Managing Director,

Aparajitha Corporate Services Private Limited