Economic Survey 2026: ‘Development is, in itself, a form of adaptation’

The Government of India’s Economic Survey 2025-2026 released on January 29, 2026 put great emphasis on adaptation to the impacts of climate change while being practical about the country’s development.

In a chapter titled Environment and Climate Change: Building a Resilient, Competitive and Development-Driven India, the survey said “development is, in itself, a form of adaptation”. 

It elaborated that effective climate action depended on “improving societal capacity to withstand shocks through stronger health systems, climate-resilient infrastructure, enhanced agricultural productivity, and access to affordable and reliable energy”. The best possible way to achieve these outcomes would be through the expansion of opportunity for people while reducing their vulnerability to climate change impacts, being mindful of the uncertainties “and pragmatic about the limits of what climate science can presently resolve with confidence”. 

“Growth and prosperity strengthen resilience and reduce vulnerability, and must therefore be treated as complementary to climate strategy rather than competing with it,” the survey explained.

The Economic Survey also highlighted the necessity to integrate adaptation with the development plans for the country. A focus on adaptation leads to reduction of losses from impacts, stabilisation of incomes and safeguarding of investments, according to the survey. 

Towards this end, the report lamented the lack of adequate finance for taking adaptation measures, especially from international and private sources. It quoted the United Nations Environment Programme’s Adaptation Gap Report 2025 about the annual adaptation finance requirement for developing countries being in the range of $310 billion and $365 billion by 2035 and the available finance is just $26 billion annually.

India’s strategy for climate change adaptation is through public investment in core development sectors and planning at the national and state levels, highlighting a major pivot towards domestic financial resources. The country has spent a considerable portion of its GDP on adaptation measures in the past as well. “India’s adaptation and resilience-related domestic spending surged from 3.7 per cent of the GDP in FY16 to 5.6 per cent of the GDP in FY22,” according to the report. 

The Economic Survey 2025-2026 detailed the adaptation measures taken by the government of India through various schemes and initiatives throughout sectors. These include the ‘Per Drop More Crop’ initiative under the National Mission for Sustainable Agriculture for the more efficient use of water for irrigating agricultural fields.

The report highlighted adaptation along the country's long coastline through initiatives such as the Mangrove Initiative for Shoreline Habitats & Tangible Incomes (MISHTI). The project aimed to restore and reforest mangroves on around 540 square kilometres across nine coastal states and Union territories by 2028. “MISHTI is expected to generate around 22.8 million person-days of employment, create an estimated carbon sink of 4.5 million tonnes and unlock opportunities for nature-based tourism and sustainable livelihoods for coastal communities,” said the report. The survey did not give an assessment of how much of these figures had already been achieved as the project was started in 2023. 

State-level planning and implementation of adaptation measures through the various State Action Plans on Climate Change (SAPCC) are also crucial, the authors of the report stressed. These plans are designed for regional adaptation needs from the coasts to the Himalayas and earlier had focused on mitigation measures for reducing greenhouse gas emissions. 

“Recent revisions of SAPCCs reflect a gradual shift towards adaptation-led development, with increasing emphasis on contextual risk considerations, sectoral vulnerabilities and alignment with district-level development priorities, where available,” said the report. 

In Meghalaya, nearly 50 per cent of the springs have either dried up or are facing reduced water flow, according to the survey. The state has taken steps to address this major change through measures such as the Protection of Vulnerable Catchment Areas in Meghalaya (MegARISE). MegARISE is a project for mapping springs in the state along with a community-led water harvesting project. 

“The initiative focuses on watershed treatment, forest restoration and participatory community involvement, with plans to establish plantations over 8,430 hectares and to treat and protect two key catchments—Umiew and Ganol,” said the survey. The project used advanced Geographic Information System for mapping of 55,000 springs. Apart from this, the state government is also establishing 500 community-level projects for water harvesting.

The survey also highlighted a water governance initiative in Odisha being carried out through 39,000 Pani Panchayats, ensuring the inclusion of women and marginalised people.

Then, an extreme heat adaptation project in Gujarat found mention in the report. Local organisations in Ahmedabad, such as the Mahila Housing Trust Self Employed Women’s Association, are implementing parametric heat insurance schemes to “compensate women in the informal sector for wage losses on extremely hot days”, according to the survey report.  

The payouts are triggered when maximum temperatures in Ahmedabad cross a certain predefined threshold or parameter. “The scheme charges an affordable annual premium of Rs 354, and subscribers receive payouts ranging from Rs 750-1,250,” noted the authors of the report.

While hailing these localised initiatives across states, the survey stated, “climate resilience and adaptation can no longer be limited to managing forests, water bodies or coastlines alone; they must be built into the economic and business frameworks that sustain livelihoods and cities.”