Newsletter November, 2025

As we enter November, large parts of India — including Mumbai — continue to experience unseasonal and persistent rainfall, a phenomenon that would have been difficult to imagine even a year ago. The shifts in climate patterns have become increasingly pronounced in recent years, and the year 2025 stands out as a case in point. This year witnessed one of the shortest summers in recent history, leading to subdued demand across several consumer categories such as air conditioners, coolers, fans, ice creams, and cold beverages. In contrast, the prolonged monsoon season — among the longest in recent decades — has driven higher sales of rain-related products such as umbrellas and protective gear. However, these extended rains have also disrupted the seasonal business cycle for products that typically see higher demand post-monsoon, including decorative paints, agrochemicals, and other weather-dependent categories. In this edition, we highlight the growing impact of climate change on consumption patterns, business performance, and investment dynamics. As climate variability becomes a defining factor for economic activity, incorporating its implications into investment and strategic decision-making is becoming increasingly imperative.