Updated
Updated · Apparel Resources · Jun 9
India Garment Factories Lose Up to 10% Productivity as Extreme Heat Hits $39 Billion Export Sector
Updated
Updated · Apparel Resources · Jun 9

India Garment Factories Lose Up to 10% Productivity as Extreme Heat Hits $39 Billion Export Sector

2 articles · Updated · Apparel Resources · Jun 9

Summary

  • Up to 10% productivity losses are hitting India’s garment factories during peak summer, according to an NYU Stern study of 10 facilities supplying retailers including Uniqlo, Marks & Spencer and Tesco.
  • Extreme heat is driving worker absenteeism, temporary production stoppages and defects such as sweat stains, dust contamination and stitching errors, undermining quality and delivery reliability.
  • Factory suppliers have largely stayed operational through short-term fixes, but the report warns they face a critical point if missed deadlines start exposing global buyers to production disruptions.
  • India’s apparel export industry employs about 45 million people, roughly 70% of them women, leaving a large heat-exposed workforce vulnerable in high-temperature, high-humidity workplaces.
  • Across India’s economy, the World Bank estimates heat-related lost working hours could put 4.5% of GDP at risk by 2030—about $150 billion to $250 billion.

Insights

With 4.5% of India's GDP at risk, is extreme heat the biggest hidden threat to the global economy?
As heat melts productivity, who will pay to cool fashion's global supply chain: brands, suppliers, or governments?

Extreme Heat Threatens $250 Billion in Indian Garment Exports: Human and Economic Costs for Global Fashion Supply Chains

Overview

As of mid-2026, persistent heatwaves in India—with temperatures soaring above 45°C—are causing major productivity losses in the country’s vital garment export sector. These extreme conditions lead to production issues like fabric damage and temporary factory shutdowns, directly hurting manufacturers’ profits and sending economic ripples across global supply chains. The situation is especially hard on garment workers, particularly women, whose health and dignity are severely compromised. Despite these challenges, the problems faced by women workers are often overlooked, highlighting the urgent need for better protections and climate adaptation in the industry.

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