Impact of Climate Change on Indian Economy: A Review

Lakshmikantha H M; Preethi Rajesh

doi:10.69968/ijisem.2025v4i1181-188

Authors

Lakshmikantha H M Department of Life Science, School of Sciences, Garden City University, Bangalore, India
Preethi Rajesh Department of Life Science, School of Sciences, Garden City University, Bangalore, India

DOI:

https://doi.org/10.69968/ijisem.2025v4i1181-188

Keywords:

Climate Change, Indian Economy, Global warming, Greenhouse gases (GHGs)

Abstract

Climate change has emerged as a critical global concern of the 21st century, with its escalating intensity causing widespread environmental and socio-economic disruptions. In India, its impact has profoundly transformed “environmental, socio-economic, and urban landscapes”, posing significant challenges to economic stability. With an emphasis on important industries including infrastructure, energy, tourism, and agriculture, this analysis examines a range of viewpoints from the literature about how climate change is affecting the Indian economy. The findings reveal that while climate change initially reduces India's fiscal deficit, it ultimately diminishes GDP in both the short and long term. Substantial increases in temperature and rainfall may temporarily boost agricultural production, contributing to economic growth, but the overall economic consequences remain adverse. In order to mitigate long-term dangers to the Indian economy and address the multi-sectoral implications of climate change, this research emphasises the need of focused policies that foster sustainable development.

References

[1] P. K. Adom, “The socioeconomic impact of climate change in developing countries over the next decades: A literature survey,” Heliyon, vol. 10, no. 15, p. e35134, 2024, doi: 10.1016/j.heliyon.2024.e35134.

[2] Asiva Noor Rachmayani, “India: The Impact of Climate Change to 2030,” p. 6, 2015.

[3] Leiserowitz Anthony and J. Thaker, “Climate Change in the Indian Mind,” 2022.

[4] Dr. S.K. Mishra, S. Sahany, D. S. Joshi, D. S. K. Dash, A. Sharma, and A. Bhalla, Impact of Climate Change on Indian Economy. 2020.

[5] L. H. M and P. Rajesh, “Bioenergy In India : Challenges , Potential and Policy Perspectives,” Int. J. Innov. Sci. Eng. Manag., vol. 4, no. 1, pp. 148–154, 2025, doi: 10.69968/ijisem.2025v4i1148-154.

[6] P. Rautela and B. Karki, “Impact of Climate Change on Life and Livelihood of Indigenous People of Higher Himalaya in Uttarakhand, India,” Am. J. Environ. Prot., vol. 3, no. 4, pp. 112–124, 2015, doi: 10.12691/env-3-4-2.

[7] K. Abbass, M. Z. Qasim, H. Song, M. Murshed, H. Mahmood, and I. Younis, “A review of the global climate change impacts, adaptation, and sustainable mitigation measures,” Environ. Sci. Pollut. Res., vol. 29, no. 28, pp. 42539–42559, 2022, doi: 10.1007/s11356-022-19718-6.

[8] M. Yadav and R. Kumar, “IMPACT OF CLIMATE CHANGE AND GLOBAL WARMING IN INDIA,” SSRN Electron. J., 2017, doi: 10.2139/ssrn.3427728.

[9] Department of Economic Affairs, “The Indian Economy: A Review,” pp. 1–62, 2023.

[10] P. Datta, B. Behera, and D. B. Rahut, “Climate change and Indian agriculture: A systematic review of farmers’ perception, adaptation, and transformation,” Environ. Challenges, vol. 8, no. January, p. 100543, 2022, doi: 10.1016/j.envc.2022.100543.

[11] V. Taraz, “Adaptation to climate change: Historical evidence from the Indian monsoon,” Environ. Dev. Econ., vol. 22, no. 5, pp. 517–545, 2017, doi: 10.1017/S1355770X17000195.

[12] S. SenGupta and A. Atal, “Climate change and India’s inflation, fiscal space and growth,” Int. Rev. Appl. Econ., vol. 00, no. 00, pp. 1–31, 2025, doi: 10.1080/02692171.2024.2445844.

[13] IMD and GoI, “INDIA METEOROLOGICAL DEPARTMENT (MINISTRY OF EARTH SCIENCES) 2021 report,” 2022.

[14] D. K. Panda, A. AghaKouchak, and S. K. Ambast, “Increasing heat waves and warm spells in India, observed from a multiaspect framework,” J. Geophys. Res., vol. 122, no. 7, pp. 3837–3858, 2017, doi: 10.1002/2016JD026292.

[15] S. A. Yashwant, “Unravelling the Genotoxic Potential of Agrochemicals on Fish Cell Line,” 2021.

[16] S. Hussain, E. Hussain, P. Saxena, A. Sharma, P. Thathola, and S. Sonwani, “Navigating the impact of climate change in India: a perspective on climate action (SDG13) and sustainable cities and communities (SDG11),” Front. Sustain. Cities, vol. 5, 2023, doi: 10.3389/frsc.2023.1308684.

[17] M. Sharma, R. Singh, and A. Kathuria, “Climate Change and the Indian Economy – A Review,” Curr. World Environ., vol. 17, no. 1, pp. 20–31, 2022, doi: 10.12944/cwe.17.1.3.

[18] A. Gupta and K. Indapurkar, “A STUDY ON IMPACT OF CLIMATE CHANGE ON INDIAN ECONOMY: A STATE- WISE ANALYSIS 1Archit,” Towar. Excell., vol. 9, no. 5, pp. 565–576, 2021, doi: 10.37867/te140249.

[19] U. Husain and S. Javed, “Impact of Climate Change on Agriculture and Indian Economy : A Quantitative Research Perspective from 1980 to 2016,” Ind. Eng. Manag., vol. 8, no. 2, pp. 2–5, 2019.

[20] D. N. Batra, “IMPACT OF GLOBAL WARMING ON INDIAN ECONOMY,” Curr. Opin. Food Sci., vol. 18, no. 4, pp. 76–81, 2021, doi: 10.1016/j.cofs.2017.11.009.

[21] M. Sandhani et al., “Impact of Climate Change on Economic Growth: a Case Study of India,” no. September, 2020.