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Friday, 6 February 2026

 

 Climate Change & Indian Economy

Special Topic • Page 1 • Basics & Farmers’ Perspective


🔹 Introduction

Climate Change refers to long-term changes in temperature, rainfall patterns, and frequency of extreme weather events. For a developing country like India, climate change is not just an environmental issue but a major economic and social challenge.

🔹 Link between Climate Change and Indian Economy

  • High dependence on climate-sensitive sectors
  • Agriculture as a major source of livelihood
  • Impact on food security, inflation, and growth

Climate change affects GDP growth, employment, and income distribution.

🔹 Impact on Farmers and Agriculture

Indian agriculture is highly dependent on the monsoon. Climate change has led to:

  • Erratic rainfall and frequent droughts
  • Crop failures and yield uncertainty
  • Rising input costs and farmer indebtedness

This directly affects farm incomes and rural livelihoods.

🔹 Food Security & Inflation

Climate-induced supply shocks reduce agricultural output, leading to food inflation. This disproportionately affects the poor and vulnerable sections.

🔹 Why Climate Change is an Economic Issue

  • Reduces productivity in the primary sector
  • Increases public spending on disaster relief
  • Creates long-term risks to sustainable growth

Hence, climate change acts as a “threat multiplier” for the Indian economy.

Exam Perspective

This topic is highly relevant for:

  • UPSC GS-III: Indian Economy, Agriculture, Environment
  • Essay: Climate change, sustainable development
  • Prelims: Climate–economy linkages

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