Is India's budget for tackling climate change enough?
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓India spent 5.6% of GDP on climate resilience in the financial year ended March 2022.
- ✓However, a new ICRIER paper shows annual economic losses hit 7.38% of GDP.
- ✓With NITI Aayog projecting a $6.5 trillion funding gap to reach net-zero by 2070, experts say urban infrastructure needs more urgent investment.
Story at a Glance
- Category
- Indian Markets
- Reported By
- CNBC TV18
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
India's adaptation and climate resilience-related spending was 5.6% of GDP in the financial year ended March 2022, according to the latest economic survey. That's about ₹13 lakh crore in nominal terms. Is that enough?
A new working paper from the Indian Council for Research on International Economic Relations, a New Delhi-based think tank, estimates the annual loss of economic output at 7.38% of gross domestic product (GDP) because of climate-related stresses. That's about ₹25 lakh crore every year ($270 billion), twice the amount India spent, according to its latest estimates.
Why does tackling climate change need a bigger budget?
According to NITI Aayog estimates, India will need $22.7 trillion in investment by 2070 to reach net-zero emissions. Nearly half of that money will go into the power sector. The government think tank sees a $6.5 trillion funding gap.
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