Environmental degradation costs India $80 billion annually

Environmental degradation costs India about Rs.3.75 trillion ($80 billion) annually - equivalent to 5.7 percent of the GDP - with air pollution being a major contributor, a World Bank report released Wednesday said.

The report 'Diagnostic Assessment of Select Environmental Challenges in India' is the first such national level economic assessment of environmental degradation in the country.

"It focuses on particle pollution (PM10) from the burning of fossil fuels, which has serious health consequences amounting up to 3 percent of India's GDP along with losses due to lack of access to clean water supply, sanitation and hygiene and natural resources depletion," the report said.

 Of this, the impact of outdoor air pollution accounts for the highest share at 1.7 percent followed by cost of indoor air pollution at 1.3 percent.

 About 23 percent of child mortality in the country could be attributed to environmental degradation, the report says.

 "Like in many other countries, the debate over growth versus environment is also active in India. This report suggests there are low-cost options that could significantly bring down environmental damage without compromising long-term growth objectives," said Onno Ruhl, World Bank country director in India.

"The costs of doing this are not only affordable in the long-term but would also be offset by the significant health and productivity benefits," said Ruhl.

"India can make green growth a reality by putting in place strategies to reduce environmental degradation at the minimal cost of 0.02-0.04 percent of average annual GDP growth rate."

 "Grow now and clean up later will not be environmentally sustainable for India in the long run," said Muthukumara S. Mani, a senior environmental economist at the World Bank and the lead author of the report.

"We believe that a low-emission, resource-efficient greening of the economy is possible at a very low cost in terms of GDP growth," Mani said.