New report says India could unlock up to $220 billion in economic gains by 2030 through clean air measures
Cutting air pollution could reduce PM2.5 levels by about 20 per cent and avert major health and productivity losses
Study links cleaner air to job creation, with an estimated 1.4 million job transitions and new roles
Air quality action should be treated as an economic and development priority, suggests paper
India could unlock as much as $220 billion in economic gains by 2030 by tackling air pollution across its most polluting sectors, according to a new report that frames clean air not just as a health or environmental issue, but as a major economic opportunity.
The analysis, The Business Case for Clean Air: Unlocking Economic Opportunities for India, by global consulting firm Dalberg Advisors and the Clean Air Fund, estimated that effective action could also avert $85 billion in business losses, cut fine particulate matter (PM2.5) pollution levels by about 20 per cent, and avoid nearly 10 million disability-adjusted life years every year.
The shift to cleaner technologies and practices could also support around 1.4 million job transitions and new employment opportunities, pointing to significant changes in India’s labour market and industrial systems.
The report builds on earlier research that put a price on dirty air. A 2021 study estimated that PM2.5 pollution causes about $95 billion in annual economic losses in India (roughly 3 per cent of the gross domestic product or GDP) through reduced labour productivity, higher healthcare costs, supply chain disruptions, and lower workforce participation.
This new assessment flips the lens from losses to potential gains. It argues that investments in clean air can deliver returns through healthier and more productive workers, lower disease burdens, expanding clean technology markets, and more resilient cities and industries. In this framing, improving air quality becomes a competitiveness and growth issue, not just a regulatory obligation.
Clean air is not only a public health priority but also an economic imperative, Jagjeet Sareen, partner and India head, Dalberg Advisors, said in a statement. “This analysis highlights where targeted investments can deliver measurable returns for businesses, workers, and the broader economy.”
The paper stated that despite recent improvements linked to national and state initiatives, including the National Clean Air Programme and city-level action plans, average PM2.5 concentrations in many Indian cities remain well above national standards.
That continued exposure, the report noted, translates into chronic health problems, lost working days and long-term constraints on productivity, particularly in dense urban and industrial regions. As a result, India is not only grappling with ongoing health risks but is also missing out on substantial economic value that cleaner growth pathways could unlock.
The study looks at interventions across seven sectors that together account for a large share of urban and regional air pollution:
Transport: Electrification of buses and freight vehicles, cleaner fuels, and improved public transport systems.
Industry: Adoption of cleaner production technologies, emissions controls, and energy efficiency upgrades.
Agriculture: Alternatives to crop-residue burning and improved agricultural practices.
Waste: Better collection, segregation, and processing to reduce open burning and landfill emissions.
Power: Shifting toward cleaner generation and reducing reliance on highly polluting sources.
Construction: Stronger dust control measures and better site management.
Residential combustion: Transition away from polluting household fuels to cleaner cooking and heating options.
Together, these measures are projected not only to cut pollution but also to stimulate new value chains in clean mobility, pollution control technologies, waste processing, and energy services.
The projected 1.4 million job transitions and new roles reflect both the decline of some highly polluting activities and the expansion of cleaner industries, infrastructure and services. The report stressed the importance of workforce planning and reskilling to ensure a just and inclusive transition.
It also highlights the role of public and development finance in unlocking private investment. Clean air projects, it argues, often deliver multiple benefits at once — including climate mitigation, better health outcomes and greater economic resilience.
“Asia’s development financial institutions and agencies are some of the biggest players in international public finance, and countries across the continent are working to tackle air pollution,” said Shirish Sinha, executive director of programmes at the Clean Air Fund. “Development donors recognise that funding clean air measures is an opportunity to see multiple returns on investment through climate and health co-benefits, while catalysing private capital in South Asian countries.”
The next step is to scale proven solutions and align clean air more closely with India’s economic and development priorities, Sinha added.
The report concluded that weaving air quality goals more tightly into economic planning across transport, industry, urban development and energy policy could help India secure substantial economic gains while addressing one of its biggest public health challenges.
By presenting clean air as a driver of productivity, job creation and investment, the authors argued, governments and businesses can mobilise action at the scale needed to deliver both healthier populations and stronger, more sustainable growth.