The thick smog engulfing northern India has disrupted factory operations, delayed supply chains, and reduced worker productivity. Industry chambers report that these challenges have escalated production costs, forcing businesses to adopt mitigation measures.
According to an Economic Times report, the PHD Chamber of Commerce and Industry (PHDCCI) estimates that over 3.4 million micro, small, and medium enterprises (MSMEs) in Punjab, Haryana, and Delhi, employing nearly 7 million workers, have suffered due to the persistent smog.
Quoting Hemant Jain, president of PHDCCI, the report said that the enforcement of Stage IV of the Graded Response Action Plan (Grap) in the National Capital Region (NCR) has halted construction and demolition activities, further hampering industrial operations. He explained that the transportation sector has also been hit hard, resulting in delayed supply chains and increased production costs.
Jain noted that prolonged smog exposure is affecting workers' health, leading to reduced productivity and extended production delays. To address these issues, industries are adopting measures such as cleaner fuels, air purification systems, and protective gear like masks.
Concerns about air pollution’s long-term economic impact
Delhi-NCR and surrounding regions have been grappling with hazardous air quality, primarily attributed to stubble burning, vehicular emissions, and heightened construction activity. Jaideep Aahuja, chairman of the Confederation of Indian Industry (CII) Delhi state, told the Economic Times that the organisation is collaborating with governments to explore short- and long-term solutions.
Aahuja revealed that CII is working with northern states to reduce stubble burning through innovative techniques and has proposed cloud seeding to the central and state governments for temporary relief. However, he warned that persistent air pollution in Delhi-NCR could deter multinational companies and start-ups from investing in the region due to health concerns.
He also emphasised the need to measure production losses caused by workers' absenteeism, stating that work-from-home solutions are not feasible across most sectors.
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Alarming air quality levels raise public health concerns
On Tuesday, November 19, air quality across Delhi, Noida, Ghaziabad, and Gurugram reached hazardous levels, with several Air Quality Index (AQI) stations recording the maximum value of 500, categorised as "severe plus." According to the Central Pollution Control Board (CPCB), areas such as Anand Vihar, Jahangirpuri, and Bawana hit the 500-mark early in the day, while others like RK Puram and Dwarka Sector 8 recorded figures close to 500.
This marked the seventh consecutive day of dense smog in the region, heightening concerns over public health and safety. Industry bodies and government agencies are under increasing pressure to tackle the crisis and mitigate its far-reaching effects on the economy and public well-being.