ExplainSpeaking: The economics of climate change in India

NEW DELHI, MAY 15:  Over the past few weeks and months there have been several stories about how extreme weather events (such as unexpected rainfall or unusually high temperatures) have disrupted normal life in India. There is also a constant reminder that more of the same can be expected with each passing year. To be sure, the Global Climate Risk Index 2021 had ranked India seventh in the list of most affected countries in terms of exposure and vulnerability to climate risk events.

Some obvious and associated questions include: What is the economic cost of climate change? How vulnerable is India’s economy to such climate change? What will happen to our GDP and inflation if timely action is not taken to address climate concerns?

In its latest report of currency and finance, the RBI (India’s central bank) has a chapter dedicated to answering many of these questions and explaining the macroeconomic effects of climate change in India.

-Indian Express