Why Financial Inclusion Should Be an Important Part of Climate Policy
Featuring Ashwini Chhatre
Over half of climate-shock-affected households in rural areas rely on personal savings to cope, an ISB study reveals.
January 15, 2026
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Ashwini Chhatre
Associate Professor of Economics and Public Policy. He is also the Executive Director of Bharti Institute of Public Policy (BIPP). An interdisciplinary scholar, his research explores the intersection of governance, economic development, and environmental sustainability. He focuses on decentralised forest governance, climate change adaptation, and multifunctional agriculture.
The economic circumstances and lived experience of different social groups often determine their response to long-standing climate risks. In the semi-arid expanse of rural India, households cope with weather-induced shocks by keeping a portion of their wealth in assets that can be quickly converted into cash when calamity strikes.
For many families, a small quantity of gold, an old silver ornament, or modest cash reserves kept at home serve as the primary, and sometimes the only, assets available to recover from extreme weather events.
The instinct to maintain liquid assets reflects people’s need for self-reliance, but it also flags the absence of accessible and reliable financial systems during critical times of need.