Extreme Heat Saps Income of India's Poorest Workers 2026

Extreme heat is pushing some of India's poorest workers further into poverty, with income losses of up to 9% for outdoor workers, new research has found. Analysis done by the International Institute for Environment and Development (IIED) reveals that extreme heat acts as a poverty multiplier for hundreds of millions in India's informal sector. These workers, already vulnerable, face devastating economic and health consequences as temperatures rise.

How Extreme Heat Reduces Wages

Researchers found that those in highly physical jobs like agriculture, construction, and transport lost an average of 6.6% of their salaries in 2024 due to extreme heat. Outdoor workers suffered the most, losing nearly 9% of their salary, amounting to £112 ($151). The economic loss was highest in Rajasthan, a region with prolonged heatwaves and a rising death toll. Informal workers there lost 8.3% of their income because extreme heat made them unable to work.

Lost Working Days and Deeper Poverty

The IIED research estimated that each year, 21.1 working days are lost in India due to extreme heat. For the 550 million workers in the informal sector, this is an unaffordable loss. Ritu Bharadwaj, climate finance director at the IIED, explained: "Heat is quietly pushing these families deeper into poverty. As the heat rises, their efficiency goes down, so they earn less. With lower income their food intake falls. And because they cannot afford to stop, they keep working through it, doing lasting damage to their health."

Comparison of Income Loss by Sector

Key Takeaways

• Extreme heat causes significant income losses for India's informal workers, up to 9% annually.
• Outdoor workers in agriculture, construction, and transport are most affected.
• Each year, 21.1 working days are lost due to extreme heat, deepening poverty.
• Workers face health damage from prolonged exposure, including exhaustion and chronic conditions.
• Climate change is intensifying heatwaves, making the crisis worse for vulnerable populations.

FAQ

As human-caused climate breakdown makes heatwaves more intense, India's poorest workers are paying the price with their health and savings. Addressing this crisis requires urgent action from governments, employers, and international bodies to support vulnerable communities.