Not just health, Delhi’s air is also toxic for economy facing a slowdown

India’s losses from air pollution increased more than four times to $560 billion between 1990 and 2013, according to the World Bank

Flight disruptions, fewer tourists, lost work hours and missed school days have come to portray India’s struggles with toxic air quality in its capital city, and the intangible costs may be adding up for an economy grappling with a sharp slowdown.

India’s losses from air pollution increased more than four times to $560 billion between 1990 and 2013, according to the World Bank, which attributed the economic burden to the rising costs of public health-care and workforce disruption. Air Pollution is now being counted among the hidden costs like repelling top corporate talent, according to analysts and industry lobby groups.

“This feeds into the broader economic environment,” said Hemant Shivakumar, a New Delhi-based senior analyst at Control Risks that advises clients on political and security risks. “If the air pollution escalates year after year and there’s no response then it’s likely to send investors a different message.”

Prime Minister Narendra Modi’s government deployed 300 field teams to curb pollution after it reached record levels earlier this month, as winds carried smoke from farm stubble burning in areas around New Delhi. Despite the measures and the state government imposing restrictions on use of private vehicles, pollution levels remain a cause for concern in the capital city of what was until recently the world’s fastest-growing major economy…