Biodiversity loss in India is being considered an important factor for the ever increasing cost of living and economic instability. This article explores how biodiversity loss affects agricultural degradation, water resources, health, and many other dimensions of human life, leading directly to inflation. India faces numerous environmental challenges as a biodiversity hotspot. Biodiversity loss is not only an ecological concern but also an increasing economic concern.
Biodiversity loss remains a major concern in India due to many factors, like climate change, pollution, over exploitation, deforestation, and habitat fragmentation. According to the Forest Survey of India 2021, India’s forest cover in the total geographical area was 21.71% in 2019, which decreased to 21.67%.
The International Union for Conservation of Nature (IUCN) states that 683 plant species are at risk due to continuous habitat loss and could become extinct at any time. A 2020 report by the World Wide Fund for Nature (WWF) indicates that India has lost more than one-third of its wetlands in the last four decades.
The degradation of wetlands hinders the natural process of cleaning water, causing water quality to deteriorate. The ability to control floods decreases, and as the risk of floods increases, the cost of water treatment also rises proportionately. This results in drinking water problems, especially in remote areas. Birds dependent on these habitats are also affected, directly impacting biodiversity.
How the economic impact of biodiversity loss is being felt in different areas of our life:
Agriculture and Food Security System
Even today, more than half of India’s workforce is dependent on agriculture for their livelihood. Agriculture is naturally dependent on biodiversity, but biodiversity loss is continuously having a negative impact on it. For example, a decrease has been observed in the number of insects like bees and butterflies, which are considered good pollinators. This reduction leads to relatively lower crop production, driving up the prices of fruits, vegetables, and pulses.
According to India’s prestigious institute, the Indian Council of Agricultural Research (ICAR), 35% of the total agricultural production in India is pollinator-based. Consequently, production has decreased by up to 40% in many areas due to the declining number of pollinators caused by environmental degradation.
For instance, consider the apple crop in Himachal Pradesh. Butterflies used to inhabit lower altitudes, but due to climate change, their habitat is gradually shifting to higher altitudes. It is believed that the lower the habitat of butterflies, the better the apple crop. However, in recent years, changes in butterfly habitats have significantly affected apple production in Himachal.
Dr. Anil Kumar, Senior Scientist at the ICAR, said, “Biodiversity loss has led to the decline of natural pollinators, which affects agricultural output. This results in higher food prices and increases the overall cost of living for the average Indian family.”
Another important aspect is soil quality. Soil biodiversity is essential for the cycling of various nutrients, including microorganisms and invertebrates. Microorganisms are organisms that we cannot see with the naked eye, including various types of bacteria, viruses, and algae. Invertebrates are organisms that do not have a backbone and help in increasing soil fertility. A decline in soil biodiversity directly affects soil fertility, necessitating the use of large quantities of chemical fertilisers, which increases production costs for farmers. This in turn, leads to higher food prices.
Similarly, predators and parasitoids are considered natural pest control agents. The level of pest control they provide is estimated to be worth about $20 billion annually globally. Predators maintain ecological balance by hunting other organisms, while parasitoids live inside or on the bodies of other organisms during their lifetime, eventually killing them. However, biodiversity loss has disrupted this natural pest control, increasing reliance on chemical pesticides. This not only raises production costs but also affects health due to pesticide residues on food items.
Impact on Water Resources
Natural wetlands and forests play an important role in purifying water and maintaining its quality. Therefore, after the entire ecosystem is disturbed, the pressure on artificial water treatment plants increases. This directly affects people’s drinking water bills and industries as well.
According to a World Bank report, if the current situation continues, by 2030, the demand for water in India will increase by 50% compared to the current availability. The damage to forest cover has reduced the natural replenishment of groundwater. In such a situation, due to the shortage of water in both rural and urban areas, the cost of extracting and distributing water has continuously increased.
Dr. Sandra Postel, Freshwater Ecologist and Director of the Global Water Policy Project, said, “As biodiversity declines, so does the health of our freshwater systems. This degradation results in diminished water quality and availability, posing a serious threat to both ecosystems and human communities.”
Widespread Impact on health
The way the entire ecosystem has changed after biodiversity loss, diseases like dengue, malaria, and chikungunya have increased rapidly. With the rise in these vector borne diseases, people’s personal health expenses also increase. This results in direct economic loss due to medical treatment costs, but the indirect loss is significant as our productivity is affected on a large scale. Additionally, the nutritional value has been greatly affected by biodiversity loss.
As crop diversity decreases, our food also lacks diversity and nutrients. Poor nutrition leads to double losses – increased health care costs and reduced productivity. The large population affected by health issues like malnutrition experiences long term economic consequences.
Livelihood and Tourism
According to World Bank data, about 275 million people in India directly or indirectly depend on forests for their livelihood. However, biodiversity loss has greatly affected various communities, specially some tribes, who rely on forests for fuelwood, fodder, and non timber forest products.
One such prominent example is the Dongria Kondh tribe residing in the Niyamgiri Hills of Odisha. The Niyamgiri Hills is considered a rich biodiversity area. A report by India Today published in 2021 states that 1,660 hectares of forest land may be affected due to the proposed bauxite mining here, which would directly impact the livelihood of the Dongria Kondh tribe.
Similarly, a report published in Down to Earth magazine in 2022 states that this tribe uses more than 300 plants with medicinal properties. The extinction of these plants due to biodiversity loss will affect their traditional healthcare practices. Furthermore, a report published in the Indian Express newspaper in 2021 mentioned that biodiversity loss has affected soil quality in the Niyamgiri Hills, directly impacting the agricultural production of this tribe. The transition from dense forest to barren land has rendered the tribe’s traditional agricultural techniques irrelevant.
From the above examples and data, the relationship between biodiversity loss and the increasing economic challenges related to living is clear. Therefore, the conservation of biodiversity seems to be the only solution to this problem. As UN Secretary-General Antonio Guterres said at the UN General Assembly in 2020, “Biodiversity is collapsing in real-time, and it is taking livelihoods, food security, and economic stability with it. The cost of inaction is far greater than the cost of action.”