Profits and Perils: The Environmental Cost of Corporate Expansion in India

Abstract: This study examines the complex relationship between industrial growth and environmental degradation in the country. It highlights how corporate activities—particularly in sectors such as manufacturing, mining, and energy—have significantly accelerated ecological damage, leading to climate change, pollution, deforestation, and the depletion of natural resources. While these sectors have contributed to economic growth, they have also imposed severe environmental costs that are often externalized and unaccounted for in traditional economic assessments. The research underscores the economic implications of environmental degradation, including health burdens, declining agricultural productivity, disaster-related losses, and long-term ecological harm that threaten sustainable development. Through detailed case studies—such as the Bhopal Gas Tragedy and industrial pollution in the Ganga and Yamuna rivers—the study demonstrates how corporate negligence, combined with weak regulatory enforcement, has resulted in long-standing environmental and socio-economic consequences. The study critically evaluates existing environmental legislation, including the Environment (Protection) Act, 1986, and Corporate Social Responsibility (CSR) mandates under the Companies Act, 2013, assessing their effectiveness in mitigating environmental harm. Despite a legal framework intended to promote accountability and sustainability, regulatory gaps, weak compliance, and minimal enforcement continue to exacerbate the risks. By incorporating an economic lens, the research advocates for stronger policies that internalize environmental costs through pollution taxes, mandatory environmental disclosures, and green incentives. It also emphasizes the importance of community engagement, corporate accountability, and policy reforms aimed at harmonizing industrial growth with environmental preservation. Ultimately, the study calls for a transition toward a green economy, where corporate success is aligned with ecological sustainability and long-term national welfare Keywords: Environment, Green Economy, Development, Sustainability