Economic Burden of Climate Change in India: A Review

ABSTRACTThe economic burden of climate change in India is a multifaceted challenge with wide-ranging implications acrossagriculture, health, infrastructure, water resources, and energy sectors. Rising temperatures, erratic monsoon patterns,and the increased frequency of extreme weather events—such as floods and droughts—are placing significantstress on the country’s economy. Agriculture, which employs nearly 50% of India’s workforce, is particularlyvulnerable, with studies estimating a potential GDP loss of 1.5% to 2% annually due to declining yields andproductivity. Health costs related to heat stress, vector-borne diseases, and malnutrition are also projected to rise,exacerbating social and economic inequalities. Coastal regions and megacities face mounting adaptation costs toprotect infrastructure from sea-level rise, cyclone and flooding. The review highlights that the venerable populations,who contribute the least to greenhouse gas emissions—are disproportionately affected. The paper underscores theneed for integrated economic modeling, region-specific adaptation strategies, and stronger climate financemechanisms. It emphasizes the urgency of embedding climate resilience into development planning and highlightsthe long-term economic benefits of transitioning to low-carbon pathways.