Indian climate action investments could create five million jobs

India could create over five million jobs by investing in climate action, according to a new report by Deloitte India in association with the Rainmatter Foundation, titled ‘The State of Climate Response in India’. The report estimates that achieving this vision would require an investment of $1.5 trillion toward climate change initiatives within the same timeframe.

The report adds that such an investment could generate between $3.5–4 trillion in annual economic output while advancing India’s transition toward a low-carbon, climate-resilient economy. The job creation would stem from sectors including manufacturing, operations and maintenance, green materials, warehousing, logistics, and feedstock aggregation. It also highlights how changing rainfall patterns, temperature shifts, land-use pressures, and biodiversity loss are increasing both the cost and complexity of climate adaptation. It calls for a systemic transformation that integrates climate considerations into governance, business strategy, and community planning.

The Executive Summary of the report states that India stands at a critical inflection point in its development journey. As India charts its path ahead, climate risk must be recognised as a core economic concern. According to Deloitte’s Turning Point research, if India pursues rapid decarbonisation and climate action, it could gain nearly $11 trillion in economic value by 2070. In contrast, failure to act could result in a loss of up to $35 trillion.

The report warns that India’s Viksit Bharat@2047 is at risk without effective climate action. To achieve the vision, India will need to sustain large-scale investments in infrastructure and industrial growth, driving up energy demand and emissions footprint. Ensuring this pathway remains resilient – balancing economic progress with sustainability will be critical, moving beyond a narrow focus on financial goals alone If climate action is not integrated into India’s growth strategy, the country risks falling short of its GDP ambitions. With its vast and varied geography, densely populated urban centres, high agricultural dependence and rich biodiversity, it faces a unique and complex set of climate risks. As the world’s fourth-largest economy and home to nearly one-sixth of humanity, India’s climate decisions carry global significance, influencing the course of global sustainability efforts.

The report’s climate dashboard aims to bring together a high-level summary of trends across key critical climate indicators to offer a consolidated view of where India stands today. It is designed to support decision-making and foster coordinated action. By bringing together environmental data and public perception, it helps create a shared language for engagement among governments, civil society, businesses and citizens.

The report is also cautiously optimistic. Despite ongoing climate challenges, there is a surge of action with initiatives ranging from government-led policy and infrastructure interventions to corporate climate innovation to community-led adaptation. Central and state-level agencies are shaping policies to address climate risks, strengthen preparedness and promote sustainable development. This includes updating regulatory frameworks, expanding early warning infrastructure, strengthening data and monitoring systems and mainstreaming adaptation into core development sectors. Climate-forward companies are moving beyond disclosure and compliance to embed climate considerations across operations, from sustainable sourcing to green product innovation. Civil society groups are driving grassroots programmes by mobilising communities and piloting scalable climate solutions. bridging the last-mile gap by translating national missions into local action, especially in underserved geographies. From building climate-resilient livelihoods to restoring local ecosystems, these groups help enable decentralised, people-first adaptation. Indian start-ups, with their innovation-first mindset, are also rapidly emerging as critical catalysts in India’s climate response. These ventures are reimagining solutions across waste management and smart farming initiatives. They are forging collaborations with corporates, government bodies and investors, unlocking new opportunities for pilots, co-development and scaled deployment.

India’s climate efforts must evolve into a unified strategy that engages all stakeholders, according to the report. A coordinated, forward-looking approach is essential to address the scale and complexity of climate risks. As momentum builds across sectors, the next phase of climate action must focus on coherence, coordination and creativity. This means not only scaling existing solutions but also redesigning the systems that shape how capital flows, how businesses operate and how communities adapt. India’s focus, therefore, must now shift towards advancing priority pathways that bring together policy, finance, technology and collaboration, creating an integrated framework for resilience and low-carbon growth.