Heatwaves may make India's inflation problem worse, hurt growth: Moody's

Over the longer term, India's highly negative credit exposure to physical climate risks means its economic growth will become more volatile

Rating agency Moody’s on Monday said that the prolonged elevated temperatures affecting much of the northwest of the country will curb wheat production and could lead to extended power outages. This may exacerbate already high inflation and hurting growth, a credit negative for the country.

Over the longer term, India’s highly negative credit exposure to physical climate risks means its economic growth will likely become more volatile as it faces increasing, and more extreme, incidences of climate-related shocks, Moody’s said in a statement today.

These risks contribute to the country's highly negative environmental risk issuer profile score and credit impact