New Delhi: As Indian exporters were already dealing with the heavy impact of tariffs imposed by US President Donald Trump, a new threat has come the fore. A report by global consulting firm BCG warns that India’s industries linked to exports and bound by international rules are now at risk from climate change. The most vulnerable sectors include aluminium, iron, and steel, which could face big losses in profits, disruptions in operations and long-term challenges to their sustainability if prompt action is not taken.

BCG Managing Director and Senior Partner Sumit Gupta, who is also Asia-Pacific leader for climate & sustainability, told PTI that according to the Climate Risk Index 2026, India ranks among the top 10 countries most exposed to extreme weather conditions.

“The cost of ignoring climate change for India could be enormous,” he said, referring to the findings released at COP30.

Citing data from the Reserve Bank of India and the World Economic Forum 2024, he explained that by 2030, extreme climate events could threaten 4.5% of India’s GDP, and by the end of the century, losses could range between 6.4% and more than 10% of national income if climate risks are not addressed.

Direct Impact On Companies

Gupta highlighted how the climate threats directly affect businesses. Extreme weather can destroy physical infrastructure such as roads and bridges, reduce workers’ hours and hamper overall productivity.

Regions with higher climate vulnerability may experience delays in project execution, and investment potential could decline as uncertainty grows.

Earnings Under Threat

BCG’s estimates suggest that globally, climate-related risks could put 5% to 25% of companies’ EBITDA at risk by 2050. Indian businesses are increasingly recognising the severity of the challenge, understanding that climate change threatens not only profits but also the long-term stability of their operations.

If India wants to protect its economy and exports, he advised, taking action on climate change is urgent and necessary.