Himachal Pradesh has faced staggering economic losses of approximately Rs 46,000 crore due to natural disasters and the escalating impact of climate change over the past four to five years. This was revealed in the recently released Himachal Pradesh Human Development Report (HPHDR) 2025. The report, a collaborative effort between the state government and the United Nations Development Programme (UNDP), marks the first comprehensive attempt to integrate climate vulnerability into the state's human development assessment.
Chief Minister Sukhvinder Singh Sukhu unveiled the 256-page report, titled 'Himachal Pradesh Human Development Report 2025: Building the Future in a Climate Impacted World'. The report highlights that the losses equate to an annual hit of nearly 4% to the state's Gross Domestic Product (GDP). The report emphasizes the urgent need for sustainable policy interventions to mitigate the compounding impacts of climate change.
The findings of the report indicate that climate change is not only causing economic distress but also altering Himachal's health landscape. It has triggered new patterns of vector-borne diseases like dengue, diarrhea, and typhoid, while increasing the risk of zoonotic infections due to wildlife displacement and shrinking forest habitats. The rising incidence of forest fires, increasing water insecurity, and environmental degradation are also major emerging threats. Forest fire incidents have surged from 856 in 2022-2023 to 2,580 cases in 2024-25. Water stress is intensifying, with 70% of traditional water sources drying up or facing duress due to erratic precipitation, forcing several villages to depopulate.
The report also highlights the rise in average annual temperatures by 1.5 degrees Celsius since 1901, with projections indicating a further increase of 2-3 degrees Celsius by mid-century. This increase in temperature, coupled with extreme precipitation and cloudbursts, increases the instances of glacial lake outburst floods (GLOF) and forest fires, further impacting economic development. Glaciers are reportedly retreating at rates exceeding 50 meters per year, leading to the creation of new glacial lakes, which increases the risk of GLOF events. The number of glacial lakes in the Sutlej basin alone increased from 562 in 2019 to 1,048 in 2023, with similar trends observed in the Chenab and Ravi basins. The report identifies Kullu and Kinnaur districts as having the highest GLOF risks.
The HPHDR 2025 assesses economic disruptions in key sectors like agriculture, construction, and tourism, estimating that Rs 10,000 crore is required to augment the state's adaptability to the climate crisis. It also indicates that around 1,700 people have lost their lives in the past five monsoon seasons.
Despite the challenges, the report also recognizes the adaptive capacity of communities living in some of the state's most remote and challenging terrains. When adjusted for climate resilience, Kinnaur, Lahaul & Spiti, and Chamba districts emerged as the top three in the climate-adjusted human development index (CAHDI).
Dr. Angela Lusigi, Resident Representative, UNDP India, emphasized that Himachal Pradesh's development path is inseparable from its climate resilience and hinges on coordinated action across sectors. The report serves as a blueprint for sustainable policy interventions, highlighting that financing climate action remains one of Himachal Pradesh's greatest challenges.
