The World Economic Forum’s latest report warns that India's economy, intertwined with nature, is teetering on the brink of a climate-induced crisis that could erode its GDP by over 10 percent off and plunge 50 million people back into poverty by the end of the century.
India’s GDP heavily depends on nature-reliant sectors, which comprise a third of the economy. These include forestry, agriculture, fisheries, and energy. Climate change, marked by rising sea levels, receding glaciers, and erratic monsoons, threatens these sectors. Predictions indicate a 16 percent drop in agricultural output by 2030, equating to a 2.8 percent GDP loss.
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The report, Unlocking Private Sector Investment into Natural Climate Solutions in India, co-authored by the World Economic Forum, the Confederation of Indian Industry, and IORA Ecological Solutions, urges India's largest businesses to amplify investments in natural climate solutions (NCS). These solutions aim to protect, restore, and sustainably manage vital ecosystems.
Despite strong sustainability commitments from major companies, the report highlights the need for significantly larger investments. While India contributes heavily to greenhouse gas emissions—nearly 70 percent from the energy sector and 6 percent from agriculture and forestry—leveraging NCS could play a crucial role in mitigating these impacts.
India must balance economic growth and climate action to safeguard its future. Taking the lead on climate initiatives could yield economic benefits worth $11 trillion, highlighting the potential of integrating sustainable practices for long-term prosperity.
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