Perspectives on Economy

How El Niño Affects the Economy

Jul 11, 2026 · 5 min read · CA Rajas Kavishwar

Every few years, a warming Pacific Ocean changes weather patterns across the globe. For India, it can mean weaker monsoons, higher food prices, increased electricity demand and slower economic growth. But El Niño doesn’t create only losers, it also creates winners. This article explores how a weather phenomenon thousands of kilometres away influences India’s economy and reshapes global trade.