Climate change is steadily transforming the foundations of rural livelihoods, making environmental resilience inseparable from economic security. As extreme weather events become more frequent and natural resources come under mounting stress, the challenge is no longer confined to ecological conservation but extends to safeguarding incomes, food security, and sustainable development for millions of rural households.
In this interview with TheCSRUniverse, Ms. Dhruvi Shah, Executive Trustee and CEO, Axis Bank Foundation, discusses how climate change is reshaping rural economies and why building resilience requires an integrated approach that combines natural resource management, livelihood diversification, financial inclusion, skilling, and strong community institutions. She highlights the Foundation’s work under Mission 4 Million, reflects on emerging trends ranging from water stress and climate induced migration to changing rural aspirations, and explains how strategic CSR can move beyond philanthropy to create long term, climate resilient development pathways.
Scroll down to read the full interview:
Q. Having worked extensively in the areas of rural livelihoods and sustainable development, how do you see climate change reshaping the economic realities of rural India, particularly for communities that depend on agriculture and natural resources for their livelihoods?
A. Climate change is no longer only an environmental concern; it is increasingly becoming an economic reality. Livelihoods that are dependent directly on natural resources, such as agriculture, livestock, forests, are experiencing rising uncertainty due to erratic rainfall, unpredictable wet and dry spells, rising temperatures, floods, and land degradation. According to the World Economic Forum (2024), India's economy could suffer a 16% drop in agricultural output by 2030 due to changing rainfall patterns, which would translate to significant livelihood instability across rainfed regions.
Natural resources and livelihoods function as one interconnected system. Water, soil, forests, and land are not merely ecological assets; they are directly linked to household income security, food availability, and local employment generation. In regions where groundwater levels have declined, or soil quality has deteriorated, farmers are increasingly facing reduced crop yields, higher input costs, and growing indebtedness, increase in mortality and diseases in livestock, change in horticulture harvests, etc.
Climate change is also shaping migration and employment patterns. Many rural families are being forced to seek alternate or seasonal employment due to declining agricultural viability. Adaptation to climate change must be viewed not only through an environmental lens, but also through the lens of economic sustainability and livelihood security.
Q. Climate change is increasingly being linked to hunger, poverty, and livelihood insecurity. From your experience on the ground, what are some of the most significant ways in which climate stress is affecting household incomes, food security, and community resilience?
A. One of the most visible impacts of climate stress is the growing unpredictability of household incomes. Reduced agricultural productivity, irregular rainfall, extreme heat conditions, and declining water availability are affecting both farm output and wage-based employment opportunities.Extreme heat affects both agricultural and labour productivity, reducing individual incomes and weakening the resilience of local food systems.
This income instability has a direct bearing on food security and nutrition. Financial stress often forces families to reduce dietary diversity, cut down household expenditures, or rely on lower-cost food options. The impact is particularly visible among vulnerable groups such as women and children. According to the World Food Programme (2025), 57% of women and 67% of children in India suffer from anaemia, while the National Family Health Survey-5 (2019–21) reported 35.5% stunting, 19% wasting, and 32% underweight prevalence among children under five(Source 1, Source 2). These indicators underscore how climate-linked income disruptions are increasingly deepening nutritional vulnerability across rural households.
Repeated environmental shocks are also weakening long-term community resilience. Households facing consecutive crop failures or livelihood disruptions are often compelled to deplete savings, take on debt, or migrate in search of work. In several regions, climate stress is contributing to higher levels of distress, migration and economic insecurity.
Importantly, climate vulnerability extends beyond agriculture alone. It also impacts livestock, forest-based livelihoods, and allied livelihoods. This reinforces the need for integrated interventions that combine livelihood strengthening, water security, ecosystem restoration, and community institution building.
Q. Axis Bank Foundation focuses on creating sustainable and diversified livelihood opportunities. How important is livelihood diversification in helping vulnerable communities withstand climate-related shocks such as extreme heat, droughts, and erratic rainfall?
A. Livelihood diversification is critical for building resilience against climate-related shocks. Households dependent on a single source of income, particularly in rainfed regions, are significantly more vulnerable to extreme weather events and changing environmental conditions.
Experience on the ground increasingly shows that agriculture alone may not be sufficient to secure rural incomes in a climate-stressed times. Even where natural resource management improves farm productivity, people remain vulnerable if earnings continue to depend on a single activity. Therefore, diversifying livelihoods are essential to reducing economic risk, improving income stability, strengtheninghousehold confidence, and reducing distress migration.
Across programmes supported by Axis Bank Foundation(ABF) as part of the Sustainable Livelihood Programme, people are gradually building multiple income streams through agriculture, natural resource management, livestock rearing, traditional craft & heritage-based avenues, self-employment, skilling initiatives, and access to organised employment opportunities for youth, including people with disabilities.
As of March 31, 2026, ABF’s Mission 4 Million supported 2.76 million rural households across 33,517 villages, across 32 States and Union Territories, supporting interventions aimed at improving income resilience with a basket of livelihoods and reducing vulnerability in climate-sensitive geographies. This includes 2.65 million rural households and 1,12,597 youth trained in vocational skills, which included 31,394 people with disabilities.
Q. What emerging trends or challenges have you observed in recent years with respect to water availability, agricultural productivity, migration patterns, or rural employment that can be directly or indirectly attributed to climate change?
A. From our grassroots experience, we are observing these trends. First, water stress is increasing erratic monsoon patterns show rising variability with intense rainfall followed by prolonged dry spells, decline in groundwater, water quality is deteriorating impacting health. Second, increase in heat leading to higher evaporation, changes in flowering patterns, impact on human and livestock health. Third is migration, wherein people are not only migrating due to economic distress, but they are also migrating due to climatic situations. Fourth is a shift in aspirations of youth - more and moreyouth are seeking livelihoods other than agriculture. They are seeking skills-based work and entrepreneurship. This is also an opportunity wherein youth can be engaged as actors in agri/ allied value chains, local businesses, etc. The fifth trend which is highly encouraging is the role women are playing in leading their development agenda. While it’s difficult to attribute it to a single aspect of climate change, we are seeing leadership emerge that is taking a decision-making role for village development and betterment of their lives and livelihoods.
Q. In your view, what role can community-led natural resource management and local ecosystem restoration play in strengthening both environmental sustainability and long-term livelihood security?
A. Natural resource management and restoration of landscapes can be pivotal in advancing ecological sustainability. When people take ownership of planning and managing resources such as water, soil, forests, and common lands, outcomes are more attuned to their realities and needs. Participatory approach fosters stewardship, encourages collective responsibility, and leads to lasting outcomes.
Restoration activities—including watershed development, soil and moisture conservation, afforestation, and rejuvenation of common lands—directly enhance the natural resource base. These efforts improve water availability, soil health, and agricultural productivity, thereby reducing dependence on erratic rainfall and supporting diversified, stable income streams. As a result, people experience greater resilience against climate shocks.
Equally, people’s institutions play a crucial role in maintaining assets, ensuring equitable access, and embedding environmental stewardship in local governance. Through collective action, these institutions sustain gains beyond the life of programme interventions, reinforcing both ecological balance and socio-economic stability.
Ultimately, community-led approaches have the potential to create a positive cycle: healthier ecosystems underpin resilient livelihoods. Empowered institutions can protect and expand these gains. This integrated approach can support stable rural economies.
Q. As CSR increasingly evolves from philanthropy to strategic development, how can corporate social investments better integrate climate resilience, livelihood enhancement, financial inclusion, and community capacity-building into their programmes?
A. As CSR evolves from philanthropy to a more strategic and outcome-driven approach, the opportunity lies in moving beyond siloed interventions towards integrated programme design. Climate resilience, livelihoods, financial inclusion, and community capacity-building are not “themes”—they are closely linked and need to be addressed accordingly.
This requires a shift to systems thinking. Investments in natural resource management, for instance, are far more effective when combined with efforts to improve farm productivity, enable access to finance, strengthen market linkages, and build local institutions. Similarly, skilling and enterprise development deliver stronger outcomes when supported by financial inclusion and local networks.
Partnerships are critical in this transition. Corporates, working alongside grassroots organisations, local governments, and communities, can anchor solutions that are locally relevant while still scalable. Equally important is investing in community institutions, which ensure continuity, collective ownership, and sustained outcomes.
At its core, the focus should be on reducing vulnerability and enabling stability—building resilience not just to climate risks, but to economic uncertainty. Well-integrated CSR programmes can play a meaningful role in creating more secure, diversified, and dignified livelihood pathways over the long term.
-900x650.png)
x
.jpg)
 (2).png)
