<p><em><strong>By Bijou George,</strong></em></p>.<p>A heatwave that has made parts of India the hottest in 122 years may be a warning that heightened climate risks could drag on economic growth and worsen the nation’s credit scores.</p>.<p>Sweltering temperatures across northwestern India may have added to inflationary pressures in the world’s second-most populous nation and weighed on growth, wrote Moody’s Investors Service analysts including Christian de Guzman in a report dated Monday.</p>.<p>Soaring demand for air conditioning at a time when power plants are facing acute coal shortages has resulted in outages and a surge in electricity prices, the ratings firm said. The heatwave will also curb output of wheat for the second-biggest producer in the world.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/national/export-ban-turns-wheat-from-bumper-crop-to-heartache-1111415.html" target="_blank">Export ban turns wheat from bumper crop to heartache</a></strong></p>.<p>Risks from extreme climate events are hitting an economy that has already been facing setbacks to its post-pandemic recovery from accelerating inflation and the central bank’s shift to a hawkish stance. The International Monetary Fund last month cut its forecast for India’s economic growth in the year started April 1 to 8.2 per cent from 9 per cent, saying the nation needs to generate more jobs and credit. </p>.<p>India’s longer-term 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,” according to Moody’s. The rating firm, which has a Baa3 rating on India, one level above junk grade, said the heatwaves are “credit negative” for the nation. </p>
<p><em><strong>By Bijou George,</strong></em></p>.<p>A heatwave that has made parts of India the hottest in 122 years may be a warning that heightened climate risks could drag on economic growth and worsen the nation’s credit scores.</p>.<p>Sweltering temperatures across northwestern India may have added to inflationary pressures in the world’s second-most populous nation and weighed on growth, wrote Moody’s Investors Service analysts including Christian de Guzman in a report dated Monday.</p>.<p>Soaring demand for air conditioning at a time when power plants are facing acute coal shortages has resulted in outages and a surge in electricity prices, the ratings firm said. The heatwave will also curb output of wheat for the second-biggest producer in the world.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/national/export-ban-turns-wheat-from-bumper-crop-to-heartache-1111415.html" target="_blank">Export ban turns wheat from bumper crop to heartache</a></strong></p>.<p>Risks from extreme climate events are hitting an economy that has already been facing setbacks to its post-pandemic recovery from accelerating inflation and the central bank’s shift to a hawkish stance. The International Monetary Fund last month cut its forecast for India’s economic growth in the year started April 1 to 8.2 per cent from 9 per cent, saying the nation needs to generate more jobs and credit. </p>.<p>India’s longer-term 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,” according to Moody’s. The rating firm, which has a Baa3 rating on India, one level above junk grade, said the heatwaves are “credit negative” for the nation. </p>