India's Informal Workers Lose Up to 9% of Income to Extreme Heat
Updated
Updated · The Guardian · Jul 20
India's Informal Workers Lose Up to 9% of Income to Extreme Heat
2 articles · Updated · The Guardian · Jul 20
Summary
Outdoor informal workers in India lost nearly 9% of their 2024 income—about £112 ($151)—to extreme heat, while workers in physically demanding sectors lost 6.6% on average, according to new IIED research.
The study says heat cut work by 21.1 days a year across India's informal economy as illness, lower productivity and site shutdowns kept laborers off the job, hitting 550 million workers with little job security.
Rajasthan recorded the heaviest losses at 8.3% of income, and the report estimates heat could cost India at least £58 billion, or 2% of GDP, through lost wages, closures and long-term illness.
Health damage is compounding the income hit: the research projects one in 20 informal workers—more than 26 million people—could develop chronic kidney disease from repeated heat exposure and dehydration.
Workers interviewed in Gurugram described collapsing, losing weeks of pay and returning to tarpaulin shelters with little relief, underscoring how heat is worsening poverty and inequality in a country where nine in 10 work informally.
Beyond lost wages, is a silent kidney disease epidemic the true cost of extreme heat for 26 million Indian workers?
Heat stress costs India £58 billion annually. Is the nation caught in a poverty trap that stifles its own growth?
As India's official heat plans fail, can a women-led insurance model save millions of workers from climate-driven poverty?
India’s $194 Billion Heatwave Crisis: Economic, Health, and Social Impacts on the Informal Workforce (2026)
Overview
As of May 2026, India faces an immediate crisis as escalating extreme heat severely impacts both public health and economic stability. Daily temperatures in regions like Delhi often exceed 40 degrees Celsius, with heatwaves now a regular part of Indian summers. This intense heat leads to significant income losses—estimated at $194 billion in 2024, or about 5% of GDP—mainly affecting daily wage earners and informal sector workers. The crisis highlights how rising temperatures not only threaten lives but also deepen economic vulnerability for those least able to cope, making urgent action essential.