How the North is shaping India’s ‘smog economy’

How is North India reacting to the crisis?

As the air quality index breaches hazardous levels all over the region, residents of Delhi-NCR and other major cities are working from home, while schools have already moved to online classes. Outdoor activities that usually rise in winter months, including dining out and shopping in high-street shopping districts, have fallen across major cities. Instead, people are staying at home, using air purifiers, venturing out with only masks on. Many are reporting irritation in their eyes, nose, and throat due to high levels of particulate matter in the air. They are seeking medication for asthma, allergies, and other ailments.

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Are people escaping the pollution?

Many have booked trips outside North Indian cities. This has led to a spike in people travelling to hill stations in northern states, including Uttarakhand and Himachal Pradesh. Places like Mussoorie, Nainital, Jim Corbett national park, and Kasauli usually see an influx of tourists every year, starting with Diwali. Meanwhile, the well-heeled are also buying second homes in the hills as part of a larger trend of owning villas and “summer homes”. Some developers, such as the Delhi-based Eldeco Group, are even marketing their luxury projects in the hills as a convenient escape from the pollution.

What constitutes India’s ‘smog economy’?

Products to protect oneself from hazardous air, such as N95 masks, Hepa filters, and home air purifiers are major constituents of this business. Drugs for allergies and respiratory diseases, along with hospitals and clinics that treat these ailments, are also crucial. Real estate and tourism in pollution-free hill stations are fast gaining importance, too.

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Which smog-related products are thriving?

Respiratory drugs are among the fastest growing pharma products in India this year, growing 19.2% year-on-year in FY24, according to research firm Pharmarack. Sales have reportedly grown from under ₹6,100 crore in October 2021 to nearly ₹10,000 crore this October. Air purifiers are expected to grow at 14–15% for the next eight years, says research firm IMARC Group. New companies, such as Acer, have emerged in the air purifier space. Manufacturers are also selling car air purifiers and air conditioners with built-in purifiers.

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What might the ‘smog economy’ look like?

Just as China tackled Beijing’s air pollution on a war footing, Indian government bodies are under pressure to address smog in the North. The onus is mostly on industrial units, construction sites, vehicle makers and large farms burning crop waste. Demand for fog cannons and other dust management systems is likely to spike as municipal bodies rush to provide relief. A construction ban has led to a rise in demand for green nets and other dust suppression materials among real estate developers.