India suffered income loss of $159 billion in key sectors due to extreme heat in 2021: Report

Between 2016–2021, extreme events triggered by climate change caused damage to crops in over 36 million hectares, and a $3.75 billion loss for farmers in the country

India suffered an income loss of $159 billion, 5.4% of its gross domestic product, in the service, manufacturing, agriculture, and construction sectors due to extreme heat in 2021, according to a new report.  

Heat exposure in the country led to the loss of 167 billion potential labour hours, a 39% increase from 1990–1999, said the Climate Transparency Report 2022 compiled by an international partnership of organisations.

Labour productivity in India is projected to decline by 5% from the 1986–2006 reference period if global temperatures increase by 1.5°C, it said.

The decline in labour productivity will be 2.1 times more if the global temperatures increase by 2.5°C, and 2.7 times at a 3°C scenario.

Between 2016–2021, extreme events such as cyclones, flash floods, floods, and landslides caused damage to crops in over 36 million hectares, a $3.75 billion loss for farmers in the country, the report said.  The annual damage from river flooding in the country is likely to increase by around 49% at 1.5°C of warming. The damage from cyclones will increase by 5.7%.

“The annual expected damage from tropical cyclones and river flooding at 3°C is 4.6 to 5.1 times that from 1.5°C,” the report read.