Deloitte report on climate action and economic future delineated that if the global average temperature rises by more than 3°C by 2070, there will be "economic losses of more than $6 trillion in present value terms by 2050, or approximately 6 percent of India's GDP in 2050"
In present value terms, this equates to monetary losses of more than $6 trillion. In such a scenario, India's economic losses from climate change would amount to nearly $35 trillion over the next half-century.
Analysts have warned that unabated global warming could cost India $6 trillion by 2050 due to erratic weather patterns. The country's economy could gain almost $11 trillion by 2070 if the current trend of substantial investments in emission-reduction efforts is maintained.
It is conspicuous enough that the Indian economy is highly vulnerable to the effects of climate change. Services, manufacturing, retail and tourism, construction, and transportation, which account for more than 80% of the country's GDP, are the top five industries most likely to be impacted by climate-related losses over the next 50 years. Temperature changes will likely affect the consistency of seasonal agricultural output, which accounts for roughly 16 percent of Gross Domestic Product (GDP).
By 2030, it would be necessary for India to sacrifice some short-term economic growth in favour of significant investments in sustainable technologies to avoid such an eventuality. According to the report, "Policy and investment decisions made in the next few years will predominantly shape India's and the world's economic and climatic future.
According to the report, “our modelling shows that rapid decarbonisation could yield economic gains of nearly $11 trillion (in present value terms) for India's economy by 2070.”
Up from its current 100 GW of installed renewable energy capacity, India aims to reach 450 GW by 2030. Investment in clean energy capacity is expected to reach $10 trillion by 2050. US presidential envoy for climate change John Kerry recently called India a "red hot investment opportunity" because of the country's efforts to increase renewable energy in the energy basket.
Power minister RK Singh said the country has already reduced CO2 emissions intensity by 28 percent compared to 2005. Under the Paris climate change COP21 agreement, the United States is committing to reduce emissions intensity by 35 percent from 2005 levels by 2030 as part of its Intended Nationally Determined Contribution (INDC). By 2050, 80-85 percent of India's total power capacity is expected to come from renewable sources, according to the government. Hydroelectric power plants account for 46 GW of India's installed power generation capacity, or 38.5 percent.