10. Improve environmental quality

India's high population density, extreme climate and economic dependence on its natural resource base make environmental sustainability critical in maintaining its development path. Environmental degradation affects the economy in several ways.

For India the impact would come from declining agricultural area and productivity due to soil erosion; reduced labour productivity from poor urban air quality, and the threat of toxic and chemical waste in the environment, among others.

For greater environmental sustainability, India must:

• Create greater public awareness for the importance of environmental sustainability.
• Adopt new and cleaner technology, especially in energy.
• Arm regulatory agencies with more teeth.

However, the Goldman Sachs Economic Research report laments that political commitment to a sustainable environment is still lukewarm. If not given the right priority, environmental sustainability has the potential to become India's greatest challenge.