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Agriculture
Parametric Climate Insurance Could Shield India's ₹52 Lakh Crore Agriculture Economy in El Niño Year
✍️ BusinessLine
🗓 01 Aug 2026, 12:33 PM
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BusinessLine reports that parametric climate insurance could protect India's ₹52 lakh crore agriculture sector during the upcoming El Niño year.
BusinessLine has highlighted the potential of parametric climate insurance to safeguard India’s agriculture economy, valued at ₹52 lakh crore, amid the anticipated El Niño year.
Parametric insurance works by triggering payouts when predefined climate indices—such as rainfall or temperature thresholds—are breached, offering rapid financial relief without the need for extensive loss assessments.
For a sector that underpins the livelihoods of millions of farmers and contributes significantly to the national GDP, such a mechanism could provide a timely safety net against the severe weather swings associated with El Niño.
Experts suggest that widespread adoption of parametric products could reduce vulnerability and improve resilience across India’s diverse agricultural landscape.
Parametric insurance works by triggering payouts when predefined climate indices—such as rainfall or temperature thresholds—are breached, offering rapid financial relief without the need for extensive loss assessments.
For a sector that underpins the livelihoods of millions of farmers and contributes significantly to the national GDP, such a mechanism could provide a timely safety net against the severe weather swings associated with El Niño.
Experts suggest that widespread adoption of parametric products could reduce vulnerability and improve resilience across India’s diverse agricultural landscape.