| Relevance: GS-III Environment & Economy · GS-I Geography · GS-II Social Justice | Source: Climate economics, June 2026 |
1 · The big idea
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We often picture climate change as a far-off debate about emission targets for 2070. But for ordinary Indians it is already a here-and-now crisis — showing up in food bills, power bills and water bills. The World Bank warns that rising heat and shifting monsoons could shave up to 2.8% off India’s GDP by 2050 and hurt the living standards of nearly half the population. Worse, it works like a “regressive tax” — taking the heaviest toll from the poor, who polluted the least. |
2 · How it hits the household budget
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Heat & power
Costlier electricity
In the May 2026 heatwave, power demand hit a record 270.8 GW (21 May). Meeting it with costly coal and imported fuel pushes up electricity tariffs. Extreme heat also cuts outdoor work hours.
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Food on the table
Food inflation
Food carries the biggest weight in the CPI (the basket used to measure inflation), so a weak monsoon quickly raises prices of rice, wheat and pulses.
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Water at home
The “tanker economy”
Erratic rain and falling groundwater dry up wells and taps, forcing families to buy water from tankers — raising the very floor-price of survival.
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The answer
Build resilience
Shift from reactive “firefighting” to climate-resilient farming, heat action planning, and guaranteed basic water and power — built into everyday economic planning.
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A telling number: a World Bank estimate suggests heat stress alone could put about 4.5% of India’s GDP at risk by 2030 through lost working hours.
3 · Who pays the most
The pain is shared unequally — and that is the heart of the social-justice angle:
- Hotspot regions: central and northern states like Chhattisgarh, Madhya Pradesh, Rajasthan, Uttar Pradesh and Maharashtra are expected to be hit hardest — areas already facing farm distress.
- Marginalised communities: Dalit, Adivasi and other poor groups lack the money to invest in better irrigation or cooling, so each shock pushes them further behind.
- Rural women: they walk farther for water, work in hotter fields, and care for family members sickened by heat — bearing a double burden.
| UPSC Value Box | ||||||||||||||
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| MCQ Practice Question |
Q. With reference to India’s climate-related policies and frameworks, consider the following statements:
Which of the statements given above is/are correct? |
Answer: (a) 1 and 2 only
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