Climate-constrained Productivity: a Production Function Analysis of Sectoral Resilience

Abstract Book of the 6th World Conference on Climate Change and Global Warming

Year: 2025

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Climate-constrained Productivity: a Production Function Analysis of Sectoral Resilience

Gopal Pathak

ABSTRACT:

Climate change poses significant threats to India, affecting agriculture, water resources, public health, and the economy. Between 1901 and 2018, India warmed by 0.7°C, disrupting climate patterns and intensifying challenges such as water scarcity, extreme weather events, and health risks. Over 600 million people face extreme water scarcity, with annual per capita freshwater availability falling below 1,700 cubic meters. Nearly 75% of districts are vulnerable to frequent and severe heatwaves, floods, and droughts. Economically, climate change is projected to reduce India’s GDP by 2.5–4.5% annually, with potential losses approximately USD 79.5 billion or even more by 2030. The Sixth Assessment Report (AR6) of the Intergovernmental Panel on Climate Change (IPCC) clearly raises concerns about climate change not only for developing nations but also for developed countries. While developed nations have taken several actions to mitigate its impacts, developing nations are still far behind, and India is no exception. India must also take strong and timely action to address this challenge. This paper discusses the key challenges, opportunities, and initiatives related to climate change in India.

Keywords: Economic Impact, Extreme Weather Events, Health Risks, Rising Temperature, Water Scarcity