Climate change: How it is affecting Indian economy and its startups are solving it.

Climate Change is Destroying the Indian Economy

Climate change has emerged as one of the greatest threats to India’s economic stability. With rising temperatures, erratic monsoons, and frequent natural disasters, the Indian economy is already experiencing serious setbacks.

Agriculture, which employs about 42% of India’s workforce, is highly vulnerable. Unpredictable rainfall, floods, and heatwaves reduce yields of rice, wheat, and pulses, causing food inflation and farmer distress. Water scarcity, worsened by melting Himalayan glaciers and groundwater depletion, affects irrigation, industries, and urban supply.

Infrastructure and energy systems are also under pressure. Heatwaves increase electricity demand while floods and cyclones damage roads, ports, and power plants. Coastal cities like Mumbai, Chennai, and Kolkata face rising sea levels and flooding, endangering jobs and investments.

Health impacts further weaken productivity. Heat stress, malnutrition, and vector-borne diseases increase healthcare costs and reduce labour efficiency, especially in agriculture and construction. Meanwhile, coastal livelihoods in fisheries and tourism are at risk from cyclones and sea-level rise.

According to the World Bank, climate change could cut India’s GDP by 2–2.5% annually by 2030. This will push millions back into poverty, widen inequality, and strain urban infrastructure through climate migration.

So here are some interesting Start ups which are solving climate change in India.

1. Chakr innovation 

Chakr Innovation is an Indian clean-tech startup founded by IIT Delhi graduates in 2016 to fight air pollution. Their main product is a device called Chakr Shield, which can be attached to diesel generators to cut harmful emissions like smoke and fine particles by up to 80–90%. Since diesel generators are widely used in India and create a lot of air pollution, this technology helps keep the air cleaner and also allows businesses to meet government emission rules. The company has installed over 5,000 devices for about 2,000 customers, preventing millions of tonnes of pollution. Recently, they raised $23 million in funding to expand manufacturing, set up a materials science research center, and work on new technologies like aluminium-air batteries that could be alternatives to lithium batteries. With more patents, strong investor support, and focus on innovation, Chakr Innovation is emerging as a key player in making India’s air cleaner and energy solutions greener.

2. AmplePac

AmplePac, founded in 2019 in Mumbai, is a startup that creates sustainable packaging to reduce single-use plastics. Instead of disposable containers, it provides reusable metal packaging that can be returned, sterilized, and used multiple times before being recycled. To ensure safety and traceability, AmplePac uses a blockchain-based system called “India Reuse” that tracks the entire lifecycle of each container, making the packaging shareable and trustworthy. Their solutions are especially useful for industries like FMCG, dairy, pharma, and hospitality, helping businesses shift toward circular, eco-friendly packaging while cutting down plastic waste.

3. Phool.co 

Phool.co is an innovative Indian startup founded in 2017 by Ankit Agarwal and Prateek Kumar. Based in Kanpur, the company addresses the environmental issue of floral waste from temples, which often ends up polluting rivers like the Ganges. Phool collects this discarded floral waste and transforms it into a range of sustainable products, including charcoal-free incense sticks, organic compost, biodegradable packaging, and vegan leather known as "Fleather". The incense products are crafted using natural essential oils and are hand-rolled by women from marginalized communities, providing them with fair employment opportunities . This approach not only reduces pollution but also empowers women and promotes a circular economy. Phool has garnered attention for its innovative solutions and has raised significant funding to scale its operations. The company has also partnered with global brands to introduce its sustainable products to international markets .

Indian startups are playing a crucial role in tackling climate change by offering innovative solutions across energy, waste management, agriculture, and sustainable materials. Companies like Chakr Innovation, AmplePac and Phool.co Materials are reducing pollution, promoting circular economy practices, and enabling clean energy and climate-resilient technologies. These startups not only help in lowering carbon emissions and conserving resources but also create economic opportunities, empower communities, and encourage sustainable consumption patterns. Their growth demonstrates that entrepreneurship and innovation can be powerful tools in India’s fight against climate change, complementing government policies and global climate initiatives.