New Delhi, May 13 -- Investors in Indian markets react instantly to quarterly earnings, oil prices, elections or monetary policy signals. A weak monsoon can move food stocks. A geopolitical crisis can rattle the rupee within hours. Yet climate risk, one of the biggest long-term threats to India's economy, barely shows up in how markets price companies and assets. This is becoming harder to justify.

India is among the world's most climate-exposed major economies. Heatwaves are getting longer and more extreme. Floods are becoming more frequent and expensive. Water stress is worsening across industrial regions. Coastal infrastructure faces rising risks.

These are no longer distant environmental concerns. They are business risks that have a...