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India must pick between a $35 trillion loss and an $11 trillion gain in terms of climate action impact

Depending on its path now, India could lose as much as $35 trillion in economic potential or gain as much as $11 trillion in economic worth. According to a research by the Deloitte Economics Institute titled “India’s Turning Point: How Climate Action Can Drive Our Economic Future,” India must act now to avoid losing $35 trillion in economic potential. However, if India can keep global temperatures from rising too high and realize its potential to ‘export decarbonisation’ to the rest of the globe, its fortunes could turn around and the country could earn as much as $11 trillion in economic value.

By the end of the century, average global temperatures could have risen by 3 degrees Celsius or more if no action is taken. As a result, people will find it more difficult to live and work as sea levels rise, crop harvests plummet, and infrastructure is damaged, among other things.

In terms of economic activity, services (both public and private), manufacturing, retail and tourism, construction, and transportation are predicted to be the most impacted industries in the next 50 years. Currently, they account for more than 80% of India’s GDP. According to the analysis, these five industries alone would lose more than $1.5 trillion in yearly value added to GDP.

Not all has been lost. According to the report, if governments, corporations, and communities act quickly and forcefully to address climate change, global warming might be restricted to roughly 1.5 degrees Celsius by 2050. Not only for India but also for the rest of the world, this would reduce the impact of climate change. India could provide the products, services, and financing that the world would require to keep global warming to a minimum and achieve major economic growth.

According to the paper, accelerated decarbonisation might benefit both India and the rest of the world. It might help India migrate to a low-emissions economy, restructure its economy, and take advantage of lower-cost clean energy export markets.

Because India is a developing country, the transition to a low-emissions economy would be difficult. It will have to strike a balance between the requirement for economic growth and the rise in energy demand that follows and investing in and transitioning to developing low-emission technologies. According to the analysis, the economic benefits of ambitious climate policy implementation would be obvious as early as the first year. This might result in an 8.5 per cent increase in GDP in 2070 alone.

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