Low-income Indian workers, many of them migrants from rural areas hit by climate change, are paying for worsening extreme heat through lost working days and health complications, with the cost equivalent to 2% of national GDP per year, new research shows. The International Institute of Environment and Development (IIED), a London-based think-tank, worked with local organisations to survey around 540 households of informal workers in three Indian cities: Ajmer, Delhi and Agra. Most had migrated from rural areas to find work in industries such as construction, brick-making, garment manufacturing and food packaging. The survey found them struggling through long working days with little access to shade, cooling, rest or water, as well as few toilets for women. And even when they go home, many live in makeshift shelters or airless cramped rooms with barely a single fan, bringing almost no respite. Outdoor workers are losing about 24 days of work a year due to heat, costing them nearly a tenth of their annual earnings, while indoor workers sacrifice roughly 15 days. On top of losing income, they are also bearing the cost of health problems like heat exhaustion, psychological stress and kidney damage brought on by repeated dehydration. If the survey’s findings are extrapolated to a national level, the IIED researchers estimate that the decline in productivity and effects of kidney disease combined add up to lost wages of $78 billion each year. Jul 20, 2026 Justice Flood deaths in West African cities raise fraught issue of slum evictions Deadly floods expose poor urban planning, over-population and spread of informal settlements on disaster-prone land – a problem authorities are struggling to manage Read more Jul 20, 2026 News Top maritime court rejects bid to halt UN deep-sea mining inquiry Two subsidiaries of The Metals Company sought to block the probe into potential contract breaches launched after the firm’s application for US-sponsored permits Read more Jul 17, 2026 Carbon markets Most ‘zombie credits’ locked out of new UN carbon market after China and India snub Fears of a flood of environmentally-dubious carbon credits have faded, with most old projects not able to transition to new UN market Read more Vishram Meena, 45, from Alwar in Rajasthan, has worked on construction sites in Ajmer for more than a decade, toiling for 10 to 12 hours a day carrying materials and mixing cement in the full sun. In May 2024, on one of the hottest days, he collapsed after feeling dizzy and suffering a nosebleed. His wife and colleagues managed to get him to hospital where he was diagnosed with heat stroke. He has since returned to the same building work because the family needs the money. ‘I went back because what else could I do? We are not machines. We are human beings. The heat is killing us slowly,’ he was quoted as saying in a report on the survey’s findings. ‘Victorian-era’ conditions Ritu Bharadwaj, IIED’s director of climate resilience, finance and loss and damage, described some of the stories from workers about their experiences of extreme heat as ‘genuinely horrifying’. Kusum, a tailor at a garment manufacturing and export unit in Kapashera, Delhi, recounted how the machines for ironing finished garments are in the same tiny room where workers are making the clothes, with steam and hot air building up through her shift. Fans are too far apart to move the air and nothing has changed in over a decade, she said, adding that ‘in summer, the unit feels like a furnace’. ‘These are Victorian-era working conditions and they’re completely unacceptable in the 21st century,’ said Bharadwaj. She called for stepped-up social protection from the government to pay people for days they are unable work due to heat, as well as micro-insurance schemes with payouts triggered by temperature measurements. This money would help families buy food and pay medical bills when their income dips if they fall ill or cannot work their usual hours due to soaring temperatures. Climate change-driven heatwaves hit Delhi’s Red Fort market traders The aim of the IIED study, Bharadwaj added, is to get policy-makers’ attention by showing the scale of damage extreme heat is doing to India’s GDP in an economy whose growth relies on service-led industries. ‘If the workers within them start falling sick, you know it’s the economic growth which is going to get impacted,’ she told a webinar to present the research. ‘Whether [policymakers] care about the workers or not, at least they would care about the GDP, and therefore then invest in their care,’ she explained. Labour code leaves out heat However, Bharadwaj noted that a 2026 reform to India’s labour law bringing a range of regulations together in one code does not include heat-related protections for workers and only applies to businesses above a certain size. She urged the government to introduce a temperature threshold above which all workers would be able to stop their activities. IIED and its partners have also carried out a similar study in Bangladesh which will be published later this month, showing that extreme heat is costing its workforce the equivalent of nearly 1.4% of GDP. Shakirul Islam, chairperson of the Ovibashi Karmi Unnayan Program (OKUP) in Bangladesh, said the government had introduced stricter safety policies for garment-making companies after the Rana Plaza complex collapsed in 2013. But, he said, these rules are rarely followed by manufacturers, especially at the level of smaller subcontractors. The workers’ welfare centres that do exist are open mainly during work hours so they are difficult to visit. Some companies also make saline water available for heat stress, which is no good for those with high blood pressure, he noted. For Indian women workers, a just transition means surviving climate impacts with dignity Archana Shukla Mukherjee, CEO of India’s Change Alliance, which also partnered with IIED on the survey, said it was time to hold both the government and businesses accountable for finding solutions to the intensifying problem of extreme heat’s effects on workers. She said that employee state insurance schemes should identify heat stroke as an occupational disease while companies along the whole supply chain should start putting in place heat protection measures, including for informal workers and migrants. If the tools and mechanisms available to help workers do not reach the most vulnerable and marginalised people, ‘then I think we are not doing something right,’ she said. The post Extreme heat costing India’s poorest workers 2% of GDP, survey finds appeared first on Climate Home News.