India's Economic Survey 2024-25, tabled on January 31, 2025, by Union Minister for Finance and Corporate Affairs Nirmala Sitharaman, emphasizes the urgent need for climate adaptation strategies to counter extreme weather events and promote sustainable development. The survey has catalyzed discussions around India’s comprehensive approach to addressing climate change vulnerabilities, underscoring the importance of investment and policy reforms aimed at ensuring resilience across various sectors.
Notably, India is facing severe climatic conditions, with the Economic Survey indicating it as the seventh most vulnerable country to climate change. Approximately 93% of days in 2024 experienced significant climate events, including heatwaves and floods, threatening agricultural productivity and future economic stability. Consequently, the survey stresses the necessity for adaptation strategies rather than solely focusing on mitigation efforts. Given India's economic ambitions of becoming Viksit Bharat by 2047, these strategies are pivotal to safeguard development achievements against climate-induced setbacks.
The Economic Survey serves as a clarion call for prioritizing the National Adaptation Plan (NAP), which is currently being formulated by the Ministry of Environment, Forests and Climate Change (MoEFCC). The NAP aims to align with sustainable development goals and secure climate resilience across all regions and sectors. The survey states, "The NAP is a strategic document articuling India’s adaptation priorities," outlining region-specific approaches addressing the diverse geographic and climatic challenges faced by the nation.
Various initiatives have been identified to bolster India's adaptive capacity. For example, the agriculture sector plans to invest heavily in climate-resilient technologies, advanced research and development of climate-resilient seeds, and modifications to cropping practices. Urban areas are grappling with extreme heat and urban flooding due to rapid urbanization, warranting comprehensive adaptation measures to improve water management, air quality, and urban planning. Not to be overlooked, coastal regions are undergoing severe stress from rising sea levels and cyclones; hence, actions such as mangrove restoration and seawall construction are highlighted.
Despite these ambitious plans, the Economic Survey reveals disturbing statistics about international climate finance. According to its findings, the goal of mobilizing USD 300 billion annually by 2035 falls drastically short of the estimated USD 5.1 to 6.8 trillion needed by 2030. The lack of adequate international funding reflects the unwillingness of affluent nations to assume responsibility for mitigating climate impacts on developing regions. "Their actions do not reflect the historical responsibility or the leadership in meeting their obligations," the survey points out, emphasizing the potential reworking of climate targets due to falling financial commitments.
Investments for climate adaptation within India have gradually risen from 3.7% to 5.6% of the GDP between FY16 and FY22. This increase is indicative of the government's growing recognition of climate resilience's importance. Nonetheless, experts warn of the sufficiency of such budgets against the challenges posed by climate change. The survey emphasizes finding innovative solutions and securing financial resources for adaptation to keep pace with the increasing demands posed by global warming.
With the deadline for India's ambitions to reach net-zero emissions by 2070 looming, the survey advocates for enhanced domestic financing efforts. By examining the link between adaptation expenditures and sustainable growth, it clearly lays out the risks confronting the country. The survey articulates, "India's climate efforts are entwined with the country’s aspirations for high and stable economic growth," reflecting the urgent call for comprehensive, actionable strategies to balance economic ambitions with environmental sustainability.
Conclusively, the Economic Survey serves as both a warning and blueprint for India's future. With its detailed insights on adaptation strategies and the urgent need for effective implementation, the nation faces an unprecedented opportunity. By addressing climate challenges head-on and strategically honing its financial and infrastructural resources, India aims to protect not only its economic future but also the livelihoods of millions affected by climate change.