Assocham cautioned that increasing air pollution can take a toll on the urban economy by cutting short the lifespan of people, thereby increasing healthcare costs for the government and drive away top executives and talented individuals to other cities having better air quality.
Such negative outcomes may severely impact inflow of investments and hit sectors like tourism, hospitality, outdoor recreation and others, according to the industry chamber.
"Promoting use of more efficient and less polluting energy sources, restricting growing number of vehicles and stringent enforcement of pollution laws will help in smooth transition to a more environment-friendly economy in the long-term," he added.
Delhi's air quality was at the season's worst yesterday as a combined effect of smoke from stubble burning and moisture turned the city into a "gas chamber", leaving people gasping and prompting authorities to announce closure of primary schools and a four-fold hike in parking fees among a series of sweeping measures.