GRAP-4 Curbs Choke Delhi's Economy, Businesses Face Rs 2,500-Crore Loss Amid Pollution Crisis

Delhi’s economy is facing a downturn due to worsening air quality. Businesses, particularly in retail and construction, are bearing the brunt of the crisis.

A worker at Kartavya Path amid low visibility due to smog, in New Delhi, Monday, Nov. 25, 2024.

Source : PTI

Delhi’s escalating air pollution crisis and the implementation of GRAP-4 (Graded Response Action Plan) have disrupted businesses across the National Capital Region (NCR). Restrictions on commercial vehicle movement and growing health concerns among residents have significantly impacted trade, tourism, and the construction sector.  

Brijesh Goyal, Chairman of the Chamber of Trade and Industry (CTI), told ABP News that retail markets in Delhi are witnessing a sharp decline in footfall, with businesses reporting massive losses over the past month.  

Delhi's air quality consistently remains in the 'Very Poor' to  ‘Severe’ category, prompting many to avoid public spaces. This has directly impacted the city’s markets.  

Before pollution levels peaked, Delhi markets would receive 3-4 lakh daily visitors from NCR regions. However, this number has dropped to just 1 lakh, causing businesses to lose an estimated  Rs 100 crore daily. Additionally, locals are increasingly turning to online shopping, exacerbating the challenges faced by offline retailers.  

In just one month, businesses across Delhi have collectively suffered losses amounting to Rs 2,500 crore, according to CTI estimates. The reduced customer activity, coupled with restrictions under GRAP-4, has severely impacted industries that rely heavily on foot traffic and vehicle-based logistics.

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Construction Sector In Crisis  

The construction industry has been particularly affected, with bans on activities causing delays in major projects and increasing costs. Gurmeet Arora, General Secretary of CTI, and Deepak Garg, Senior Vice President, highlighted that many daily wage workers are now out of jobs due to the halt in construction work. This has further deepened the economic crisis for workers dependent on these sectors.  

Tourism & Wedding Seasons Take a Hit  

Delhi’s pollution crisis has also impacted its vibrant wedding and tourism seasons. Over 200 events have been postponed as organizers and attendees opt to avoid the city. The decline in tourism and event-related activities has further strained local businesses.  

Reports of Delhi’s air quality consistently falling into the severe category have dominated TV, newspapers, and social media, fueling public hesitancy to engage in outdoor activities. The combination of health concerns and restrictions has led to an overall decline in consumer spending and business activity across the capital.