Climate risk, credit constraints, and firm productivity in India

Project Active from 1 Jan 2026 to 31 Dec 2026 Firms, Trade and Sustainable Growth

Climate change is increasingly disrupting economic activity in India, where rising temperatures reduce firm productivity and may tighten credit conditions, particularly for smaller manufacturers reliant on external borrowing. This project investigates how temperature shocks affect firm performance, borrowing costs, and aggregate productivity, offering evidence to guide targeted credit and climate adaptation policies that support sustainable growth and financial stability.