Examining How Climate Shocks Affect Agriculture in Indian States

Has India Implemented a Climate-Smart Agricultural Policy ?

Abstract

This study investigates the impact of climate shocks on Indian agriculture and evaluates the presence of a climate-smart agricultural policy. Using four econometric models—Conditional Logit, Nested Logit, Nested CES Climate-Smart Model, and Spatial Error Model—the analysis reveals that extreme temperatures and erratic rainfall significantly affect agricultural productivity. Findings highlight regional disparities in adaptation and policy inefficiencies in mitigating climate risks. The study underscores the need for a structured, region-specific climate-smart strategy, integrating sustainable practices, precision farming, and financial support to enhance resilience and long-term agricultural sustainability.