Delhi’s ‘very poor’ air chokes economy, deals $300mn blow to local businesses

New Delhi, India

Delhi’s air quality index (AQI) remained in the ‘very poor’ category Saturday (Nov 30) morning, continuing a trend observed throughout the past week. The AQI fared between 300 and 400 at several monitoring stations across the Indian capital, six to eight times above the prescribed safe limit of 50. In Western and Northwestern parts of the Indian national capital, the situation was even worse with the AQI meter pointing to readings above 400.

Experts blame the high level of pollution in Delhi on a combination of factors, including a lack of rainfall, local emissions, and regional factors, including farm fires from surrounding states. Slow winds and cooler temperatures have further exacerbated the air crisis in the Indian capital.

Delhi’s businesses also choking

Meanwhile, a report by the Chamber of Trade and Industry (CTI) has revealed that measures taken by the government to curb pollution in Delhi under the so-called GRAP-4 or Graded Action Response Plan have cost the city around INR 2,500 crore ($300 million).

CTI chairman Brijesh Goyal said increased pollution levels have led to a sharp decline in footfall in markets as well as a slowdown in the tourism sector.

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Goyal said that around 300,000 to 400,000 visitors would arrive in Delhi markets before the AQI crisis but the number has since dropped to just over 100,000. This translates to a daily loss of over $12 million to Delhi retailers and businesses as shoppers increasingly turn to online shopping.

GRAP-4 restrictions have also dealt a significant blow to the construction sector, as dozens of restrictions have been imposed on activities. This has rendered several daily wage workers jobless.

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The Supreme Court of India said Thursday that the stage 4 restrictions would remain in place at least until December 2. The apex court may then consider easing restrictions in the next hearing.

(With inputs from agencies)