HomeEconomyIndia EconomyNCAER: India's economy resilient to heat wave

NCAER: India’s economy resilient to heat wave

As India braces for soaring temperatures that threaten to damage crops and raise food inflation, concerns are mounting over the potential impact on the nation’s economy. However, a key advisor to Prime Minister Narendra Modi has assured that the economy is well-equipped to handle any weather shocks that may come its the way.

The Indian Meteorological Department has predicted that temperatures will rise in the coming months, fueling worries about a repeat of last year’s devastating heat wave. The extreme weather conditions not only caused damage to crops but also forced the government to restrict the export of essential food items like wheat, rice, and sugar.

Despite these challenges, Poonam Gupta, head of the National Council of Applied Economic Research, is confident that the Indian economy can weather any potential heat wave. Gupta, the first woman director general of the New Delhi-based independent economic policy research think tank, pointed out that the agriculture sector only accounts for a relatively small part of India’s GDP, at 17%.

“Even if heat waves strike again and crops get affected, overall growth should not suffer,” Gupta said. Her comments come as a reassuring signal for the Indian economy, which has been facing headwinds due to the ongoing COVID-19 pandemic.

As concerns over the impact of rising temperatures on the Indian economy mount, Gupta’s analysis provides much-needed hope that the nation can overcome any challenges that lie ahead. With a combination of sound policy measures and effective implementation, India can continue to drive economic growth and progress for its citizens.

As India’s economy faces unexpected headwinds, a top advisor has urged the government to remain nimble in its policy response to weather-related setbacks that could affect crop yields.

In an interview, the advisor emphasized the need for the government to take appropriate measures to counter any potential damage to crops caused by adverse weather conditions. The advisor’s comments come in the wake of the Indian Meteorological Department’s prediction of hotter temperatures over the coming months, which has raised concerns about the potential impact on agriculture and food inflation.

India’s economic growth has already been impacted, with the latest data showing an unexpected slowdown to a three-quarter low of 4.4% in the three months to December. The government has been grappling with the challenges posed by the ongoing COVID-19 pandemic, which has resulted in job losses and a slowdown in economic activity.

Against this backdrop, the advisor stressed the need for the government to stay nimble and adapt its policies as needed to support economic growth. This approach would be especially important in the context of weather-related setbacks that could affect crop yields and food prices, which could further dampen economic growth.

The advisor’s call for nimble policy responses underscores the importance of agility in navigating the current economic challenges facing India. As the country continues to grapple with the pandemic and other uncertainties, policymakers will need to stay attuned to the evolving situation and take decisive action as needed to ensure that the economy stays on track.

Priyanshi Mishra
Priyanshi Mishra
Priyanshi Mishra is a student of MA in Economics at the University of Lucknow. She has strong communication and content-writing skills.
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