Former IMF Chief Economist Gita Gopinath has warned that pollution poses a far greater economic threat to India than trade-related challenges, calling for urgent action to make it a national priority.

Speaking at the World Economic Forum in Davos, Gopinath said pollution is often overlooked in discussions about growth and business expansion, despite its serious economic and social consequences.

“Pollution is a challenge in India. If you look at the impact of pollution on the Indian economy, it is far more consequential than any impact of tariffs imposed on India so far. The annual cost to India’s GDP is huge, and it’s not just economic activity—lives are lost. The numbers are really large,” she said.

Citing a 2022 World Bank study, she noted that pollution causes around 1.7 million deaths in India each year, accounting for nearly 18% of total fatalities. Gopinath also warned that worsening environmental conditions could deter international investors. “Any investor thinking of coming to India will consider the environment they have to live in. If it affects health, it’s going to hold them back,” she said, adding that tackling the problem “on a war footing” should be a top mission for the country.

Her comments drew mixed political reactions. Leaders from the ruling coalition were cautious about comparing pollution with tariffs, while opposition parties largely backed her assessment. Shiv Sena MP Milind Deora said, “Pollution is a serious challenge that costs lives and hurts the economy, but it’s an internal issue we must fix ourselves. Tariffs are external barriers and need to be addressed differently.”

Congress MP Manickam Tagore criticised the BJP, saying, “Pollution is choking lives, productivity, and growth. IMF flags it as a bigger threat than tariffs.” Shiv Sena (UBT) leader Aditya Thackeray also welcomed Gopinath’s remarks, stressing that ignoring pollution and climate change could have severe social and economic consequences.