😥 Heatwaves Melting India’s Growth?
Worried about recession? Well, the new threat to our economy is heatwaves. How? ReadOn!
No matter who you talk to nowadays, they only have one complaint: it’s too hot.
We just had the hottest February ever and it looks like we're on the way to breaking some more records.
Even schools and colleges have been defeated by the scorching heat: many states have declared early summer holidays.
The heat is so deadly, it’s literally killing people.
Source: The Hindu
And it could also be deadly for our economy.
Research has shown that just a one-degree rise in temperature can reduce the growth of a developing economy by 2%!
Wondering how?
ReadOn!
🥵 How Heat Sucks Out Your Energy
Imagine it's 9 am. You’re waiting for an auto to go to college/office. The auto gets stuck in insane traffic and you’re boiling under the sun.
You had to plan for that important presentation, but all you can think of is how hot it is.
When you finally reach your destination, you’re already drained.
Sounds familiar?
This lack of productivity due to the heat ends up costing the economy.
Indians missed 167 billion hours of potential work in 2021. This translates to an income loss of $159 billion, or 5.4% of our GDP!
What’s worse is that 75% of India’s workforce (380 million people) depend on heat-exposed labour.
Yes, construction workers, farmers and delivery partners brave the heat to make our lives comfortable.
Imagine the productivity loss they face due to this unbearable heat!
And these heat-exposed jobs account for almost half of our GDP.
So, productivity losses in these spheres could be a huge threat to our economy.
It could cause our growth to slow down, or worse, stop.
Worried already? Well, the list of problems goes on.
You see, the heat could leave us with less food on our plates and fewer exports on our list. How?
🧐 How Heat Could Melt the Economy
India's agriculture sector contributes to about 18.3% of our GDP.
This sector is also really vulnerable to heatwaves: they can decrease crop yields by 10-15%!
Low yields mean low supplies of fruits and vegetables.
Low supplies cause prices to rise, leading to inflation (you can read more about this here).
Now, inflation could:
reduce spending in the economy
cause the RBI to hike interest rates again
Result? You guessed it: economic slowdown.
Now, how can heat impact exports?
You see, high temperatures can cause transportation delays, reduce the shelf life of fruits and veggies, and increase the risk of equipment failure like coolers.
10% to 30% of fruit and vegetable crops this year could go to waste because of the unexpected rise in temperatures.
Yup, the heat will not just reduce food production, it will also cause food wastage.
Now, we are trying to tackle this heat, but…
55% of our electricity still comes from coal.
So, when we use more electricity to stay cool during the summers, we release more emissions into the air, which further heat up the environment.
Yep, we’re trapped in a vicious cycle.
What can we do to get out?
💡Solutions to the Heat Threat
Well, the ultimate solution would be to solve climate change, the root cause behind this oppressive heat.
India is adopting green energy to reduce emissions and solve climate change, but this is a long-term solution.
What can we do to solve the problem temporarily, especially for workers working in the heat?
Well, the government could create laws that require companies to provide air-conditioners or proper shades to work in.
We could invest in creating buildings that remain cool even during summers.
We could also change work schedules: start work earlier before the heat turns scorching, take a break during the day and work again after sunset.
Some traditionally hot countries like Qatar and Dubai have already implemented such steps.
Farmers could also create temporary shade provisions in the field.
Plus, the government could teach them about farming methods that protect crops from heat. Methods like laying wet straw on the ground near the crops could help them retain water for longer. Taller plants could also be planted to give crops shade.
The Indian Council of Agricultural Research has come up with technologies that can minimise heat damage to crops. These efforts have already reduced the loss of crop yields from 15-20% to 2-3%.
But we need to work harder.
Otherwise millions of lives, jobs and dollars could be at stake.
What other steps can the government take to beat the heat? Let us know in the comments!
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