New Report Identifies USD 220 Billion Economic Opportunity from Clean Air Action in India

A new report has identified USD 220 billion in economic opportunities from clean air action in India. The study, 'The Business Case for Clean Air: Unlocking Economic Opportunities for India,' was released by Dalberg Advisors in collaboration with the Clean Air Fund. It outlines how focused clean air solutions can significantly reduce particulate matter (PM2.5) levels and create economic value across multiple sectors.

Air pollution remains a major challenge in India, leading to reduced productivity, unplanned absences, and rising healthcare costs. The report follows a 2021 study that estimated annual economic losses at USD 95 billion, or 3% of India's GDP. Despite recent progress, PM2.5 levels in many cities still exceed national standards.

The report identifies high-impact solutions in transport, industry, agriculture, waste, power, construction, and residential combustion. These initiatives could reduce PM2.5 levels by ~20% by 2030, generate USD 220 billion in economic gains, and support 1.4 million job transitions and new jobs.

Why Did This Happen?

The report was launched in response to ongoing concerns about air pollution's economic and public health impacts. Jagjeet Sareen, Partner and India Head at Dalberg Advisors, emphasized the dual benefits of clean air initiatives. He stated that targeted investments can deliver measurable returns for businesses, workers, and the broader economy.

Clean air is increasingly seen as both a public health and economic imperative. The report highlights how businesses across sectors can benefit from reduced pollution. For instance, cleaner air could avert USD 85 billion in business losses by 2030 and avoid nearly 10 million Disability-Adjusted Life Years annually.

What Are Analysts Watching Next?

Analysts are paying close attention to how these clean air initiatives are implemented. The report emphasizes the importance of collaboration across sectors. Transport, industry, and agriculture will need to adopt cleaner technologies and practices to achieve the projected reductions in PM2.5 levels.

The Clean Air Fund's recent report, 'The State of Global Air Quality Funding 2025,' shows an increase in air quality investments in South Asia. This trend suggests greater institutional and governmental support for clean air solutions. However, the success of these initiatives will depend on consistent policy enforcement and public awareness.

Businesses that adopt clean air strategies early may gain a competitive advantage. The report encourages companies to invest in sustainable practices that align with national and global climate goals. This could include transitioning to electric vehicles, reducing emissions in manufacturing, and adopting greener agricultural techniques.

How Does This Impact Investors?

Investors are showing growing interest in clean air technologies and services. The USD 220 billion economic opportunity represents a significant market potential for companies involved in pollution control, green energy, and environmental services. Startups and established firms in these sectors could benefit from increased funding and government contracts.

The report also highlights the potential for new jobs in clean air industries. This could attract investment in labor-intensive sectors such as waste management, renewable energy, and sustainable agriculture. These sectors offer both economic and social returns, particularly in rural and underserved areas.

For institutional investors, the report provides a roadmap for integrating environmental, social, and governance (ESG) criteria into investment decisions. Clean air initiatives align with global sustainability goals and could enhance portfolio resilience in the face of climate-related risks.

The Indian government and private sector will need to work closely to realize these opportunities. Continued public-private partnerships, policy support, and technological innovation will be essential. Investors are advised to monitor policy developments and market trends in the clean air space to capitalize on emerging opportunities.