Unlocking Economic Growth Amid the Climate and Biodiversity Crises
By Rushikesh Chavan
For the past 25 years, I’ve been chasing answers to questions that many brushed off as marginal – why were we losing species such as the giant clam, the atlas moth, or even the tiger? To some, this work seemed like charity. To others, a passion project. But for me, it was neither indulgence nor idealism.
These weren’t side issues – they were warning signs. The more I looked, the more it felt like we were flying in a plane that was slowly losing its rivets, one by one, heading towards disaster.
What alarmed me most wasn’t just the ecological unraveling, but how few people seemed willing to confront it. Climate change loomed large, yet the solutions were either cosmetic or riddled with compromise. The deeper I went, the clearer it became: the real issue wasn’t just environmental – it was economic. Too much of our decision-making was tethered to short-term profits and GDP growth, ignoring the long-term costs to life as we know it and to us.
Agroforestry systems such as this coffee plantation on the edge of the Western Ghats, where trees grow alongside crops, hold immense potential. They sequester carbon, support pollinators, improve soil health, and provide diversified income for farmers. Photo: Ajith Padiyar/Sanctuary Photolibrary.
That realisation forced me to shift perspective. If we’re serious about surviving – and thriving – in a world shaped by climate disruption and mass biodiversity loss, then our definition of prosperity has to change. It can’t just be about how much we produce or consume. True progress must balance ambition with responsibility, and growth with regeneration.
Looking back now, I wonder if I’d been asking the right questions all along. Trying to save species one at a time, I may have missed the bigger picture. What we really need is a soliton* approach – a kind of wave that moves forward with undiminished energy. One that blends ecology, economy, and equity into a system that not only sustains, but heals.
For India, a nation with aspirations of becoming one of the world’s largest economies, this wave must be ridden with intention. Biodiversity loss and climate change are already leaving a visible mark and threatening the country’s growth trajectory. The Asian Development Bank (ADB) warns that climate change could reduce India’s GDP by as much as 25 per cent by 2070. Even by 2030, the Indian economy is projected to shrink by $500 billion, which is equivalent to a six to seven per cent dip in anticipated growth.
Yet, within this looming climate correction lies an unprecedented opportunity: to grow smarter and more resilient.
Over two decades of work across India, I have witnessed that the marginalised, particularly farmers, bear the brunt of environmental disruption. In Central India, our research revealed that many farmers were trapped in cycles of debt, with failed monsoons devastating agriculture. Paradoxically, successful tiger conservation had led to unintended human fatalities, as increased tiger populations negatively interacted with nearby communities.
Instead of viewing such outcomes in isolation, we must recognise that even a 10C rise in temperature can reduce crop yields by four to five per cent. A 2019 Indian Council of Agricultural Research (ICAR) study reported yield losses of up to 20 per cent in water-stressed regions. The World Bank echoes this, projecting agricultural productivity losses of six to 10 per cent by 2030.
However, agriculture can also be a source of resilience. With the right strategies, such as agroforestry and nature-based farming practices, degraded lands can be transformed into economically viable, climate-resilient landscapes.
Urban centres are no less vulnerable. Chennai’s 2019 water crisis brought daily life and commercial activity to a standstill, underlining how even India’s economic hubs depend on robust ecological systems. The World Bank estimates water scarcity alone could shave six per cent off India’s GDP by 2030.
I vividly recall the Mumbai floods: a night when I witnessed people's belongings float away, as lives were lost on the streets of Maximum City. These are not isolated events anymore, they are daily realities at a scale that are quickly forgotten after the event, but has great negative impacts, such as labour productivity. The International Labour Organisation (ILO) predicts a global 2.2 per cent drop in productivity by 2030 on account of heat stress, with India among the hardest-hit. In labour-intensive sectors such as construction, heatwaves could reduce productivity by up to 20 per cent, according to a 2020 study from IIT Delhi. Companies such as Zomato and Larsen & Toubro have already adjusted their operations to cope with the steadily rising temperatures.
In July 2005, Mumbai came to a standstill as relentless rains triggered one of the city’s worst floods in history. Streets turned into rivers, exposing the stark vulnerabilities of urban infrastructure in the face of climate extremes. Photo: greyarea/cc-by-2.0.
My conversations with leading business figures and respected economists reveal a growing consensus: the urgency is clear, and the private sector needs a level playing field to remain profitable while acting responsibly.
Rather than viewing climate action as a burden, forward-thinking businesses need to see it as a source of competitive advantage. The time has come to evolve towards regenerative business models, those that not only reduce harm but actively restore ecosystems and build resilience.
India’s private sector can lead this transformation by embracing what I call strategic solitons: climate resilience, nature-positive innovation, and carbon sequestration through ecosystem restoration and integrated land-use policies.
Building climate-resilient infrastructure is no longer optional, it is foundational to sustainable business. Investments in flood control, water conservation, and energy efficiency do more than mitigate risks; they secure long-term business viability.
Reports by the World Bank and ADB advocate for ‘climate-proofing’ economic assets. Such investments should not be seen as costs but as future-facing strategies for return on investment. Equally critical is climate risk governance. By adopting frameworks such as the Task Force on Climate-related Financial Disclosures (TCFD), businesses can anticipate disruptions and meet the transparency demands of global investors. According to the Financial Stability Board, climate risk disclosure is fast becoming a standard criterion for capital allocation.
The next frontier lies in regenerative technology and circular economy models. As highlighted by the International Energy Agency and NITI Aayog, industries must pivot to low-carbon manufacturing, renewable energy, and sustainable supply chains.
From textile mills recycling wastewater to agro-processors adopting solar-powered cold chains, innovation is driving India’s industrial transition. But innovation must also be drawn from nature itself.
India’s forests, soils, and wetlands are among the world’s most potent natural assets. Covering 24.56 per cent of the landmass, forests are one of India’s largest carbon sinks. The 2019 State of Forest Report estimates a carbon stock of 7,204 million tonnes, making forests indispensable in climate mitigation.
Tropical forests, rich in biomass, and mangroves in states such as West Bengal and Odisha sequester carbon both in vegetation and sediments. There is vast untapped potential to at least double the carbon sequestration capacity of the country's ecosystems.
Soils, too, are underappreciated carbon vaults. Practices such as conservation tillage, agroforestry, and nature-based farming can enable India’s farmlands to capture up to 1.8 billion tonnes of carbon annually. These ‘soil solitons’ simultaneously improve fertility, enhance water retention, and bolster food security.
This mangrove stand appears to be readying itself to face climate change. Mangroves in states such as West Bengal and Odisha sequester carbon both in vegetation and sediments. There is vast untapped potential to at least double the carbon sequestration capacity of the country's ecosystems. Photo: Mrinal Mal/Sanctuary Photolibrary.
Scaling carbon sequestration requires accelerated ecosystem restoration, particularly of grasslands and wetlands, under initiatives such as the Green India Mission. Government estimates suggest that forests and soils could sequester 2.5 to three billion tonnes of CO2 annually, provided land-use practices are improved and degraded lands revived.
Agroforestry systems, where trees grow alongside crops, hold significant promise. They store carbon, support pollinators, enhance soil quality, and diversify farm incomes. Coastal ecosystems not only trap atmospheric COâ‚‚ but shield communities from rising seas and cyclonic storms.
Nevertheless, challenges remain. Habitat loss, increasing urban demand on natural resources, and land degradation are accelerating. National assessments reveal widespread erosion and falling organic carbon levels owing to unsustainable farming and unchecked development.
Policy reform must shift from rewarding exploitation to incentivising restoration. India’s commitments under the Paris Agreement and the National Action Plan on Climate Change (NAPCC) offer a framework, but implementation, monitoring, and community participation are key.
Though businesses alone cannot solve the climate crisis, their alignment with science, policy, and civil society can wield transformative influence. High-level industry dialogues are increasingly focused on forging collective actions that simultaneously drive economic growth, resilience, and ecological renewal.
A call to action:
1. Integrate climate resilience and nature-based solutions across entire value chains.
2. Invest in large-scale carbon sequestration through ecological restoration, regenerative agriculture, and wetland conservation.
3. Forge public-private partnerships for the development of climate-smart infrastructure and support the adoption of green techology.
Organisations such as The Habitats Trust and Sanctuary Nature Foundation are leading the way by convening a dialogue between industry leaders and environmental innovators. Their shared mission: to ensure that economic ambition reinforces, rather than undermines, nature.
Are the Indian farmer and agricultural systems capable of facing an unpredictable climate? However it is certain that India’s top priority must be the ecological restoration of its natural carbon sinks, water systems, and climate-resilient habitats. Photo: Vandan Desai/Nc-bynd-2.0.
In the 21st century, GDP should be seen not as the destination, but as one metric within a broader framework that values ecological integrity, social wellbeing, and sustainability. The outdated industrial mantra of ‘grow now, clean up later’ is no longer viable.
The emergence of climate econometrics using real-time data and satellite imagery to track ecological indicators presents a new toolkit. Institutions such as the World Bank and AlphaGeo are advocating for its integration into business planning, supply chain management, and carbon accounting. In this paradigm, nature is not an externality; it is a vital asset.
India's obstacle is not a lack of solutions, but a lack of systemic integration. The tools exist, from carbon-absorbing mangroves to zero-waste production lines. These must be synthesised into a unified strategy that aligns government, industry, and civil society.
India’s top priority must be the ecological restoration of its natural carbon sinks, water systems, and climate-resilient habitats. With 10 biogeographic zones, India has a unique opportunity to lead the world in climate-positive living.
This transformation requires a soliton mindset: forward-moving, regenerative, and enduring. Like the oceanic wave from which the term is drawn, a soliton retains its shape through turbulent terrain. Similarly, India’s progress must preserve its ecological essence while navigating the complexities of climate and biodiversity crises.
The reward is profound: an India that not only leads in GDP growth, but also in ecological innovation and social equity. An India where forests and wetlands are factories of the future, soil is treated as a sovereign resource, and economic flow aligns with the pulse of the planet.
Let the soliton rise.
Rushikesh Chavan is the Head of The Habitats Trust.
