green norms will impact India’s auto, construction sectors
Tougher green regulations — like the odd-even norm being tested by the Delhi government to combat the alarming level of air pollution — is going to impact India’s automobile and construction industry hard, says an Assocham survey. Dealing with such regulations would require further investments in technology innovation which might increase the cost of production for a host of industries. To address the deteriorating levels of air quality in big cities like Delhi, analysts expect many more stringent green regulations will be enacted by other state governments as well. Such policy risks would impact both these sectors as they are seen as the largest contributor to city pollution. “And therefore, both the construction and automobile industry should be prepared to deal with possible public outrage and must devise ways for meeting such challenges,” cautions the survey. With the economy still in doldrums, higher cost of production is going to impact the already sluggish demand in the economy. “Call it a price of development which every stake-holder (producer and consumer) has to pay,” feel many green enthusiasts. There is a perception that unplanned construction done in a crude and unscientific way is the major contributor to city pollution. “In the absence of planned and organised urban development, cities have witnessed mushrooming of slums that now account for a quarter of all urban housing,” says Assocham. Such mushrooming growth of slums with lack of proper sanitation and waste disposal wherewithal add to the city pollution. Currently about a third of India is urbanised but the need for creating more urban centers is being felt to meet the aspirations of India’s younger demography. Since the construction industry would play an important role in stepping-up the urban development, any controversy on environmental pollution is the last thing that the construction industry would want.