Indian economy will be hit hard by rising heat: Global report

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News:McKinsey Global Institute has released a report titled “Climate risk and response: Physical hazards and socioeconomic impacts”.

Facts:

About the report:

  • The report analyses the physical risks and socio-economic impacts of climate change across the world in the next three decades under a business-as-usual scenario.

Key takeaways from the report:

  • Countries and regions with lower per capita GDP levels are the most vulnerable and will be hit the worst with the economic shocks of climate change in coming decades.
  • Around 90% of the excess heat due to global warming is actually stored in the oceans which will affect the livelihoods of around 650-800 million people in the fisheries industry.
  • However,climate change may also provide an economic boost to some colder, richer countries.Tourism in areas of northern Europe and agriculture in Canada may see some benefits of rising temperatures.

Report on India:

  • Extreme heat will significantly lower the outdoor working capacity of India’s labour workforce in the next three decades putting at risk the country’s economic growth.
  • By 2030,rising heat and humidity levels will expose between 160 million and 200 million Indians to a higher risk of lethal heat which could put between 2.5 and 4.5% of the GDP at risk annually.