Long-term changes in temperature and weather patterns are referred to as climate change. These movements could be due to natural causes, such as oscillations in the solar cycle. However, human activities have been the primary cause of climate change since the 1800s, owing to the combustion of fossil fuels such as coal, oil, and gas.
The present article gives an overview of the Indian economy impacted by climate change. Climate change is a major crisis the globe is facing now.
Impact of climate change on the Indian economy
India is the world’s sixth most vulnerable country to climate change. The changes in climate affect the economy in various ways. According to a report produced by the London-based global think tank Overseas Development Institute, India might lose anywhere between 3 and 10% of its GDP yearly by 2100, and its poverty rate could grow by 3.5 percent by 2040 as a result of climate change.
Cost to the climate crisis
The Indian economy could lose trillions in the next decade if no effective climate action is taken to minimize the effects of climate change. According to a Deloitte analysis, India might lose $35 trillion in various sectors by 2070 if it does not transition to low-emission fuels and lessen its reliance on fossil fuels. The overall cost of the devastation could be as much as 12.7 percent of India’s GDP. According to the analysis, if nothing is done about climate change, India’s economic potential will be reduced by 5.5 percent per year on average over the next 50 years.
If the measures are not implemented, these five industries will be prone to risk:
- Service sector
- Retail and tourism
- Manufacturing industry
- Construction industry
- Conventional energy sector
Currently, these sectors contribute more to India’s GDP.
Other impacts of climate change
Other than the economy, climate change affects the following factors which indirectly relate to the economy:
Climate changes alter water resources. Shortage of freshwater resists overall activities. The change in the Monsoon pattern has been bad to worse in the last decade. The late arrival of monsoon and heavy rainfall in a day has become a daily episode in the season. Megafloods are getting more severe than ever.
Food supply depends on the weather conditions. Though the technology has been implemented, it is not enough to cover the margin of food shortage in the long run.
- Human health
Heat is one of the most dangerous weather conditions. Hurricanes are becoming stronger and wetter as ocean temperatures rise, posing a direct and indirect risk of fatalities. More wildfires occur as a result of dry weather, posing numerous health dangers.
It is also affected by the calamities driven by the change in temperature. Infrastructure is the basic necessity for the uninterrupted flow of the economy. Heatwaves, extreme winter, or severe rainfall have become the prime reasons for infrastructure destruction.
Government effectors on dealing with climate change
Indian Prime Minister Narendra Modi announced a five-point strategy dubbed the Panchamrita at the 26th Conference of Parties (CoP26) to attain this goal.
These are the five points:
- India’s non-fossil energy capacity will reach 500 gigawatts (GW) by 2030.
- By 2030, India will have met 50% of its energy needs with renewable energy.
- From now until 2030, India will lower its overall estimated carbon emissions by one billion tonnes.
- By 2030, India’s economy will have reduced its carbon intensity by less than 45 percent.
- India will achieve Net Zero by the year 2070.
With the impact of climate change becoming obvious through irregular weather patterns, analysts have estimated that unabated global warming might cost India $6 trillion in monetary losses by 2050. On the other side, if the current trend of significant investments in emission-reduction initiatives continues, the country’s economy might benefit by about $11 trillion by 2070.
We are at an alarming stage where just having conference meetings will not help us recover from the mess we have created. It’s not just India that developed nations are mainly held responsible for this consequence. Their growth in the last two centuries has increased the pace of rising earth’s temperature & polluting our air.
The destruction stage has been arranged by a few, for their so-called growth & peace. Now, it’s high time for us to correct those environmental crimes & correct what has been done wrong.
– Varada Ukidave & Parag Ahire