How India can be a $11 trillion economy by 2070 from positive climate action

24th Aug,2021

How India can be a $11 trillion economy by 2070 from positive climate action


If no major action is taken to address climate change, global emissions will continue to rise, and such inactivity will be the baseline route for India's and the world's economy, severely impacting economic growth. According to a new analysis by Deloitte Economics Institute, India may gain $11 trillion in economic value over the next 50 years by minimising global warming and realising its ability to "export decarbonization" to the rest of the globe. According to a new analysis by Deloitte Economics Institute, India may gain $11 trillion in economic value over the next 50 years by minimising global warming and realising its ability to "export decarbonization" to the rest of the globe. According to the research, if India does not act now to offset the consequences of climate change, it might lose $35 trillion in economic potential by 2070, accounting for 12.7 percent of its GDP. The research, titled India's turning point: How climate action can drive our economic future, reveals that if nothing is done about climate change, global temperatures may climb by 3°C or more by the end of the century. As sea levels rise, agricultural yields decrease, infrastructure is destroyed, and other difficulties emerge, people will find it more difficult to live and work, jeopardising the country's recent development and prosperity. Atul Dhawan, the chairman of Deloitte India, stated that India has roughly a decade to make decisions that would assist shift the course of climate change. Despite the fact that no one is immune to the effects of climate change, Dhawan sees a "window of opportunity" for India to lead the way and demonstrate that climate action is not a cost-cutting exercise but rather a means of achieving long-term economic success. “As India strives to become a $5 trillion economy, we must not just focus on international and domestic investments, but also use this chance to connect our aspirations with climate choices,” Dhawan added. The top five most afflicted industries in terms of economic activity are anticipated to bear a large proportion of climate-related losses over the next 50 years. More than 80% of India's GDP is generated by these industries: government and private services, manufacturing, retail and tourism, construction, and transportation. They are the foundation of the country's current economic engine. According to Deloitte, these five industries alone might lose more than $1.5 trillion in annual value-added to GDP by 2070. However, if governments, companies, and communities move quickly to address climate change over the next decade, average global temperature rises can be reduced to about 1.5°C by 2050, reducing the impact of climate change on India and the rest of the globe. At the same time, India can achieve considerable economic growth by providing the products, services, and funding that the rest of the world will require to keep global warming to a minimum.