The Economic Survey 2025–26 has placed climate change adaptation at the centre of India’s development strategy, arguing that growth and resilience must move together. Released on January 29, the survey underlined that strengthening infrastructure, agriculture, energy access and health systems is as crucial to climate action as emission cuts.
In a chapter titled Environment and Climate Change: Building a Resilient, Competitive and Development-Driven India, the survey stated that “development is, in itself, a form of adaptation,” stressing that economic progress helps societies absorb and recover from climate shocks.
Growth, resilience and climate action must move together
According to the survey, effective climate action depends on improving the capacity of people and systems to withstand extreme weather events and long-term climate stress. It highlighted climate-resilient infrastructure, enhanced agricultural productivity, affordable and reliable energy access, and stronger health systems as key pillars of adaptation.
The report noted that expanding economic opportunities while reducing vulnerability is the most practical pathway for a developing country like India. It also cautioned against over-reliance on uncertain climate projections, calling instead for pragmatic policies that strengthen resilience on the ground.
“Growth and prosperity strengthen resilience and reduce vulnerability, and must therefore be treated as complementary to climate strategy rather than competing with it,” the survey said.
Adaptation finance remains a major gap
While emphasising adaptation, the survey expressed concern over the lack of adequate funding, especially from international and private sources. Citing the United Nations Environment Programme’s Adaptation Gap Report 2025, it noted that developing countries will need between $310 billion and $365 billion annually for adaptation by 2035, while current global finance stands at just $26 billion a year.
India, therefore, is increasingly relying on domestic resources. The survey pointed out that adaptation- and resilience-related public spending rose from 3.7 per cent of GDP in FY16 to 5.6 per cent in FY22, reflecting a strong shift towards public investment in core development sectors.
From mangroves to heat insurance, states drive local adaptation
The survey highlighted several government initiatives across sectors and states. These included the ‘Per Drop More Crop’ programme under the National Mission for Sustainable Agriculture to improve irrigation efficiency and reduce water stress.
Along India’s coastline, the Mangrove Initiative for Shoreline Habitats & Tangible Incomes (MISHTI) aims to restore mangroves across about 540 square kilometres in nine coastal states and Union territories by 2028. The project is expected to generate employment, create a carbon sink and support nature-based livelihoods, though the survey did not provide progress figures since its launch in 2023.
State Action Plans on Climate Change were identified as another critical tool. The survey noted that recent revisions of these plans show a gradual shift away from mitigation-only approaches towards adaptation-led development that reflects local risks and vulnerabilities, from coastal erosion to Himalayan water stress.
In Meghalaya, where nearly half of the springs have dried up or seen reduced flow, the survey highlighted the MegARISE project, which focuses on spring mapping, watershed treatment and community-led water harvesting. The initiative uses Geographic Information System technology to map tens of thousands of springs and supports large-scale forest restoration and catchment protection.
Odisha’s water governance efforts through nearly 39,000 Pani Panchayats also found mention, particularly for ensuring the participation of women and marginalised communities.
The survey also cited an extreme heat adaptation initiative in Ahmedabad, where local organisations have introduced parametric heat insurance for women in the informal sector. The scheme provides compensation for wage losses during extreme heat days, with payouts triggered when temperatures cross predefined thresholds.
Concluding the chapter, the survey stressed that climate resilience cannot be limited to protecting forests, water bodies or coastlines alone. It must be embedded within economic systems, urban planning and livelihood frameworks if India is to build long-term resilience while continuing to develop.