Key facts
- Extreme heat is causing significant income losses for India's poorest workers, with some losing up to 9% of their salaries in 2024.
- The International Institute for Environment and Development (IIED) found that heat acts as a "poverty multiplier" for hundreds of millions of workers in India's informal sector.
- Workers in highly physical jobs lost on average 6.6% of their salaries in 2024 due to extreme heat, with outdoor workers suffering the most.
- IIED estimates that 21.1 working days are lost annually in India due to extreme heat, impacting 550 million informal sector workers.
- The research estimates that heat could cost the Indian economy at least £58bn (2% of GDP) annually.
- Prolonged exposure to heat and dehydration may lead to chronic kidney disease, potentially affecting over 26 million informal workers in India.
Extreme heat is significantly impacting the livelihoods and health of India's poorest workers, pushing them further into poverty, according to new research by the International Institute for Environment and Development (IIED). The study found that workers in highly physical jobs, particularly in agriculture, construction, and transport, lost an average of 6.6% of their salaries in 2024 due to heat. Outdoor workers experienced the most severe income reduction, losing close to 9% of their earnings, equivalent to £112 ($151) annually.
The research highlights that extreme heat acts as a "poverty multiplier" for the estimated 550 million workers in India's informal sector, who often lack job security and are compelled to work through illness and unsafe conditions. The economic toll is substantial, with the IIED estimating that 21.1 working days are lost per worker each year due to heat. The analysis considers reduced productivity, heat-related illnesses, and worksite suspensions as key factors contributing to these losses.
The economic impact is most pronounced in regions like Rajasthan, where informal workers lost 8.3% of their income due to prolonged heatwaves. The IIED estimates that the cumulative cost of heat to the Indian economy could reach at least £58bn annually, or 2% of its GDP, through lost wages, reduced productivity, and long-term health consequences. Furthermore, prolonged exposure to heat and dehydration increases the risk of chronic kidney disease, potentially affecting over 26 million informal workers in India.
Personal accounts from workers illustrate the harsh reality. Construction workers reported falling ill repeatedly, leading to missed work, lost income, and often no compensation from employers. Inder and Laxmi Kumar, a couple working on a construction site, lost eight days' wages due to fever and exhaustion but returned to work because they could not afford to stop. They live in a basic tarpaulin shelter that offers no respite from the heat. Sattavir, another worker, developed a kidney infection from heat exposure and dehydration, incurring medical costs that exceeded his earnings, and found it difficult to secure work due to his weakened state.