Climate change-induced extreme heat in 2021 resulted in India witnessing an income loss of US$ 159 billion, which is 5.4 per cent of its gross domestic product, in the service, manufacturing, agriculture, and construction sectors while labour productivity is projected to decline by five per cent from the 1986–2006 reference period if global temperatures increase by 1.5 degrees Celsius in next few years, as per a report.

Compiled by an international partnership of organizations, the Climate Transparency Report 2022 notes that heat exposure in the country led to the loss of 167 billion potential labour hours, a 39 per cent increase from 1990–1999.

Labour productivity in India is projected to decline by five per cent from the 1986–2006 reference period if global temperatures increase by 1.5 degrees Celsius, it said.

The decline in labour productivity will be 2.1 times more if the global temperatures increase by 2.5 degrees Celsius, and 2.7 times at a three degree Celsius scenario.

Between 2016 and 2021, extreme events such as cyclones, flash floods, floods, and landslides caused damage to crops in over 36 million hectares, a $3.75 billion loss for farmers in the country, the report said.

The annual damage from river flooding in the country is likely to increase by around 49 per cent at 1.5 degree Celsius of warming. The damage from cyclones will increase by 5.7 per cent. "The annual expected damage from tropical cyclones and river flooding at three degrees Celsius is 4.6 to 5.1 times that from 1.5 degrees Celsius," the report read. In India alone, 142 million people, roughly 10% of the population, may be exposed to summer heatwaves at 1.5°C

"Precipitation is projected to increase by six per cent from the reference period of 1986–2006, at 1.5 degrees Celsius of warming. Under a three degrees Celsius warming scenario, precipitation will increase by three times the precipitation anticipated at 1.5 degrees Celsius of warming," it said.

The rainfall pattern in India has changed in the past 30 years, impacting many economic activities such as agriculture, forestry and fisheries. "Snowfall in India is expected to decrease under the 1.5 degrees Celsius scenario by 13 per cent when compared with the reference period's snowfall levels. At three degrees Celsius of warming, the decrease is expected to be 2.4 times the 1.5 degrees Celsius scenario," the report said.

Earth’s global surface temperature has increased by around 1.1 degrees Celsius compared with the average in 1850–1900.

To address climate change, countries adopted the Paris Agreement in 2015 to limit global temperature rise in this century to well below two degrees Celsius, preferably to 1.5 degrees Celsius, compared to pre-industrial levels.