Nithin Kamath, CEO of online brokerage platform Zerodha, has raised concerns about India’s escalating air pollution levels following New Delhi and Mumbai’s ranking among the world’s costliest cities in terms of property prices.
*Rising Property Prices*
In a post on social media platform X, Kamath pointed out that cities like Delhi, Mumbai, and Bengaluru have featured prominently in Knight Frank’s Q4 2024 Global Luxury Market Rankings due to rising housing prices. According to the Knight Frank report, New Delhi ranked 6th among the most expensive cities globally, with average home prices increasing by 6.7%. Mumbai followed closely, ranking 7th with a 6.1% rise in property prices.
*Air Quality Concerns*
“What doesn’t get nearly enough attention is the AQI (Air Quality Index) of the three cities. The pricier cities in India have worse air quality, and these are averages for the city; most places have a higher AQI,” Kamath noted in his post. He emphasized the pressing issue of air pollution in major Indian cities.
*Global Pollution Trends*
Kamath cited an article from Ourworldindata, explaining that global pollution levels seem to follow a “U-shaped pattern,” observed in countries like the United States, the United Kingdom, and China. As these nations develop, their pollution levels rise dramatically before eventually declining. “But despite this, we don’t have to accept pollution as a given because of technological advancements; we can do a lot to reduce the obvious sources of pollutants,” Kamath stated.
*Key Pollutants*
Kamath highlighted the significant pollutants, such as sulfur dioxide and nitrogen oxides, generated from burning coal for power, which currently accounts for nearly 70% of India’s energy needs. He suggested installing scrubbers in power plants to trap sulfur emissions. “Even though China continues to burn record amounts of coal, its sulfur emissions have gone down because of this. In India, both coal use and SO₂ emissions are still rising,” Kamath explained.
Addressing nitrogen oxide pollution, Kamath identified transportation as the biggest source, particularly in urban areas where density and congestion are higher. He advocated for stricter emission standards and the electrification of transport fleets to mitigate pollution.
*Impact on Health and Costs*
Kamath linked rising pollution with higher living costs, noting that increased pollution leads to more health issues. He cited a Reuters report stating that insurance companies in India might charge residents of New Delhi 10-15% more for new health insurance policies due to the surge in air pollution-related claims in 2024. “Now think about all the other channels through which pollution will interact with prices and inflation. This is scary,” Kamath remarked.
*Air Pollution Debate*
The air pollution debate in India gained momentum when American entrepreneur and influencer Bryan Johnson expressed concerns about the nation’s poor air quality earlier this month. During a podcast shoot with Zerodha co-founder Nikhil Kamath in Mumbai, Johnson, who had brought an air purifier, left mid-way due to the city’s poor air quality standards. This incident reignited the air pollution debate on social media platforms, fueling discussions across the country.
