India presents a massive market opportunity driven by extreme climate vulnerability. As the 7th most climate-vulnerable country, it experienced extreme weather on 93 per cent of days in 2024, leading to 700 heatstroke deaths.
The economic cost of this heat risk is enormous, with US$141 billion of income lost in 2023 due to heat. Due to shifting climate patterns, India also grapples with 1.6 million deaths annually from air pollution and an extended dengue season lasting 5.6 months.
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These findings were revealed in a report titled ‘Unlocking Capital For Climate x Health: The Investment Landscape in Asia’, prepared by AVPN and Prudence Foundation, in partnership with Catalyst Management Services (CMS).
The Indian government has responded with significant policy mechanisms, creating investment targets for adaptation.
- NPCCHH and heat action plans: The National Programme on Climate Change and Human Health (NPCCHH) requires implementing climate resilience measures in health. This includes 37-plus Heat Action Plans (HAPs) at the city, district, and state levels focusing on health preparedness and early warning systems.
- Cooling mandates: The India Cooling Action Plan (2019) aims to reduce cooling demand by 30 per cent by 2037, promoting green jobs and efficient cooling technology.
- Digital health infrastructure: The Ayushman Bharat Digital Mission (ABDM) enables nationwide telehealth, AI diagnostics, and digital health records, providing the foundational digital infrastructure necessary for scalable health solutions.
Investable themes in the Indian Market
The confluence of high risk and policy direction makes several themes highly investable in India:
- Heat resilience and cooling: Nearly 70 startups focus on cooling, benefiting from national mandates.
- Parametric Insurance: Solutions like WRMS SecuRisk leverage satellite data and digital payments to provide instant payouts to farmers and outdoor workers, reducing disaster-driven health losses.
- Clean air technology: Companies like Devic Earth, offering air-as-a-service, capitalise on India’s US$1.7 billion National Clean Air Programme (NCAP).
While private climate-tech inflows have reached approximately US$4 billion since 2015, the US$1 million to US$3 million ticket gap remains challenging. Exit pathways are improving, however, with IFCAP (Innovative Finance Facility for Climate in Asia and the Pacific) guarantees and public procurement opening doors for refinancing early-stage ventures at lower cost via local commercial banks.
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This early momentum, combined with scale potential, positions India as a dynamic, albeit complex, frontier for climate x health capital.
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