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Economic implications of the heatwave

Extreme heat across parts of India could be particularly damaging to the agriculture sector through both a drop in crop yields and a fall in labour productivity. But industry and services aren’t immune; a surge in demand for electricity to power cooling devices could exacerbate chronic coal shortages and raise the risk of power cuts. And given the backdrop of the general election, all of this raises the chances of (small) fiscal giveaways.

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