India, Sept. 7 -- Climate change in India has been looked upon more as an environmental issue for decades. This then turned into a development challenge and now to a fiscal risk. Transport networks and supply chains can be paralysed during a flood. Heatwaves may decrease productivity from work and increase electricity consumption. During drought, the real purchasing power gets affected and farm incomes. Cyclones can cause damage to public infrastructure, disrupt activities of businesses and affect the provision of essential services.

The expenses continue after these uncertainties. Governments need to fund relief, reconstruction, social protection and the restoration of public assets, which may occur at a time when economies are already ...