Subscribe to enjoy similar stories. New Delhi: Climate change is no longer just affecting lives. It’s hurting the economy more than ever before, whether through extreme heat or rain bringing down farm output and driving up prices, or making countries adopt cross-border tariffs to factor in the costs of carbon reduction.
This is only going to get worse in 2025 and the following years. India lost 8% of its GDP in 2022 due to climate change, according to a study by the University of Delaware's Gerard J. Mangone Climate Change Science and Policy Hub.
Asian Development Bank estimates India could lose 24.7% of its GDP by 2070 due to climate change. In fact, ADB’s ‘Asia-Pacific Climate Report 2024’ warns that Indian agriculture is expected to be severely impacted, with wheat and maize yields dropping by as much as 45% and 20%, respectively. Labour productivity could also decline by about 30% by 2070.
The intensity and frequency of weather conditions like droughts, floods, heatwaves and cyclones are anticipated to be destructive in the future, worsening lives, livelihoods and the economy, warn climate experts, calling for investments to mitigate the effects of global warming. “Like every year, 2024 was worse than 2023; and 2025 is going to be worse," said Chandra Bhushan, chief executive of the International Forum for Environment, Sustainability & Technology (iFOREST). “Climate change is no longer just about rising temperatures or its impact on lives.
While people are indeed affected, the core issue now is its economic impact," said Bhushan. “Climate change is now directly impacting our economic growth and development. As the crisis worsens, it will create more poverty and reduce our growth rate." Forecasts are not promising.
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