The scorching Indian summer has turned into a season of despair for millions of the country's poorest workers, who are struggling to survive as extreme heat takes a disproportionate toll on their earnings. Research from the International Institute for Environment and Development (IIED) paints a stark picture: outdoor workers in India's vast informal sector – which includes agriculture, construction, and transport – have seen average salary losses of 6.6% due to intense heat, with some sectors experiencing declines as high as 9%. The economic strain is particularly acute in arid regions like Rajasthan, where the prolonged heatwaves and rising death toll are exacerbating an already dire situation.
The IIED analysis found that extreme heat costs Indian workers around 21.1 working days per year – a staggering figure for those in precarious jobs with limited benefits or job security. For Ritu Bharadwaj, Climate Finance Director at the IIED, the study's findings underscore how rising temperatures are deepening poverty and exacerbating structural inequalities, even as India strives to become a developed nation within the next two decades.
Personal accounts from workers like Inder and Laxmi Kumar, who toil on construction sites in Gurugram, reveal the human cost of heat-related illnesses. Despite suffering dehydration and heat exhaustion, they felt compelled to continue working to support their families. This highlights the woeful lack of basic provisions at many worksites – including drinking water, shade, rest areas, and medical support – which forces individuals to endure unsafe and unhealthy conditions.
The economic cost of heat-related losses is substantial: estimates suggest that it amounts to at least £58 billion annually, equivalent to 2% of India's GDP. This includes lost wages due to reduced productivity, worksite closures, and long-term health issues stemming from heat-related illnesses. With human-caused climate change making heatwaves more frequent and intense globally, India – where nine out of ten people work in the informal economy – faces a pressing challenge that requires urgent attention.
The UK's trade relationships with India are also likely to be impacted by these developments, as well as its own economy, which is heavily reliant on global supply chains. As policymakers grapple with the economic and human implications of extreme heat, it is clear that a coordinated international response will be necessary to mitigate the effects of climate change in one of the world's most populous countries.