India 7th most vulnerable country to climate change: Economic Survey

05-Feb-2025

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As global environmental agencies declared 2024 the hottest year on record and countries faced extreme weather events, India is no different.

The Economic Survey tabled in Parliament identified India as the seventh most vulnerable country to climate change, highlighting the country's susceptibility to extreme weather events, slow onset phenomena like sea-level rise, biodiversity loss, and growing water insecurity.

These challenges disproportionately affect developing nations like India, which bear the brunt of historical greenhouse gas emissions while lacking the resources for adequate adaptation.

"India faces challenges in deploying renewable energy, particularly due to a lack of storage technology and access to minerals. Given India's vulnerability to climate change, a strong adaptation strategy is essential," the Economic Survey stated.

These conditions threaten agricultural productivity and can lead to food inflation and social unrest. The economic impact is profound, with estimates suggesting that climate change could reduce India's GDP by 3% to 10% annually.

The Economic Survey, however, also highlighted that the Indian government has ramped up its adaptation expenditures from 3.7% to 5.6% of GDP between FY16 and FY22. This increase reflects a growing recognition of the need for robust climate resilience strategies.

Experts further warned that the $300 billion annual finance target set for climate adaptation by 2035 is insufficient compared to the estimated requirement of USD 5.1 to 6.8 trillion by 2030.