The Heat Is On: India's Economy Faces the Ultimate Climate Test

India is struggling with a premature and vigorous summer, with temperatures crossing 40°C. Although the heatwave has fueled sales of cooling devices such as air conditioners and refrigerators, the overall economic effect is a cause for worry. Agriculture, the major contributor to GDP, is vulnerable to lower production of crops such as wheat and vegetables, possibly pushing inflation further. Informal sector employees are among the worst affected, losing income and health from heat stress over long periods. Water shortages and higher electricity usage also put a strain on resources. Experts predict India may lose a maximum of 5.8% of working hours by 2030 due to heat stress, leading to substantial losses in GDP. There is an urgent need for intervention in weather forecasting, crop insurance, and climate adaptation to counter these challenges.

 

Source: India Today Insight