Climate change is one of the most critical socio-economic and environmental problems in India. Although India’s per capita emission is very low compared to other developed nations, the economic impacts are very high as millions depend on climate sensitive sectors for instance, agriculture and forestry etc. Given the above context, this paper discusses the status of climate change, its economic impacts, especially for agriculture and forestry, climate change and financial gaps and other climate policy initiatives in India. In addition, this paper also discusses the four aspects such as climate change and macro-economic impacts, distributional aspects, social cost of carbon, and finally finance and technological aspects. There arises an urgent requirement to conduct a vulnerability assessment for reducing future poverty and inequality associate to climate change in India.