Heat Costs India’s Informal Workers $78 Billion Annually

A recent survey released by Climate Home News estimates that India’s informal workforce is losing roughly $78 billion in wages each year, a figure that represents about 2 % of the country’s gross domestic product. The loss is attributed to productivity declines and illness stemming from intensifying heat, according to the study’s authors. The data, drawn from a nationwide sample of informal workers across multiple sectors, highlight how rising temperatures are eroding earnings for some of the country’s most vulnerable laborers.

The report details that heat‑related fatigue and heat‑stroke cases have increased sharply over the past decade, forcing many workers to take time off or to work at slower paces. In addition, the lack of climate‑adapted infrastructure—such as shade, cooling facilities, and adequate hydration—has amplified the health burden. The survey’s authors note that the informal sector, which accounts for a substantial share of India’s employment, lacks the safety nets and regulatory protections that formal workers enjoy, making it especially susceptible to climate‑induced wage erosion.

These findings underscore the economic toll of climate change on low‑income populations and suggest that without targeted adaptation measures, the informal workforce could face a growing wage gap. The study calls for policy interventions that address heat exposure and strengthen health and labor protections for informal workers, whose livelihoods are increasingly threatened by rising temperatures.