At a time when geopolitical tensions, mounting global uncertainties, a brewing banking crisis. Inflation has affected key economic superpowers in the West, 2023 will be a crucial year for India’s economy.
Despite its slower development, India is expected to have one of the strongest economies this fiscal year. However, there is one element that might go sour.
While the nation is mostly protected from the problems mentioned above, it is expected to continue to have extended summer heatwaves. It might seriously harm its economic prospects.
In 2022, heatwaves had a disastrous effect on the Indian economy, affecting many different industries and even triggering a protracted era of high inflation.
Over the past few years, India has experienced a progressive worsening of heatwaves as a result of a variety of reasons, including the consequences of climate change. For a nation like India, where more than half of the population relies on agriculture as a primary source of income, this is a concerning development.
However, heatwaves affect more than simply farming and agriculture. Additionally, they may result in large employment losses, times of high inflation, and increased healthcare and energy expenditures.
Things which can affect the economy
Heat waves can have a negative influence on labour productivity. Heat-related ailments like dehydration, heat exhaustion, and others can cause workers to miss work, be less productive, or even pass away. The International Labour Organisation estimates that by 2030, heat stress would cause a 2.2% loss in working hours worldwide.
India’s GDP and employment are heavily reliant on the agriculture industry, which is extremely susceptible to the effects of heatwaves. Both farmers and consumers may be impacted by extreme heat’s effects on crops, reduced yields, and higher food prices.
Another significant effect of heatwaves on the Indian economy is rising inflation. Low crop yields sometimes cause food prices to increase, which causes inflation. Given their catastrophic consequences on the human body, heatwaves can also place additional strain on the healthcare system. Hospitals may be overrun with patients during heatwaves because heat exhaustion, heatstroke, and other heat-related disorders can be fatal.
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