Indian exports face higher risk due to climate inaction
India may lose 4.5% of GDP by 2030 due to climate-induced extreme events. By end of the century these challenges could cost between 6.4% and over 10% of national income
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New Delhi: India’s export-driven businesses in sectors such as aluminium, iron and steel that face international regulatory shocks are increasingly exposed to risk due to climate inaction threatening their profits, operations, and long-term viability, according to global consulting firm BCG.
India is among the top 10 countries most affected by extreme weather events, as the ‘Climate Risk Index 2026’ launched at COP30 reveals, and the cost of inaction for India is too big to ignore, BCG Managing Director and Senior Partner, Asia Pacific Leader, Climate & Sustainability, Sumit Gupta, told in an emailed interview. Citing data from RBI and WEF 2024, he said 4.5 per cent of India’s GDP by 2030 is at massive risk of erosion due to climate-induced extreme events, and by the end of the century, climate-related challenges could cost India between 6.4 per cent and over 10 per cent of its national income.
