Extreme Heat Sinks Incomes 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 soaring temperatures act as a critical poverty multiplier for the informal sector.

How Extreme Heat Worsens Poverty

The study shows that workers in 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 close to 9% of their salary—amounting to £112 ($151). These losses are devastating for the 550 million informal workers in India.

Ritu Bharadwaj, climate finance director at the IIED, explains: “Heat is quietly pushing these families deeper into poverty. As the heat rises, their efficiency goes down, so they earn less.” This cycle of reduced income and declining health traps workers in a spiral of debt and hardship.

Key Economic Impacts

Health and Financial Toll

Workers report that extreme heat causes chronic body pain, exhaustion, and reduced productivity. Many cannot afford to stop working, leading to lasting health damage. The IIED research highlights that each year, 21.1 working days are lost due to extreme heat—an unaffordable loss for families already living on the edge.

Human-caused climate breakdown intensifies every heatwave, making these losses more frequent and severe. India, where nine out of ten workers are in the informal economy, is especially vulnerable.

Key Takeaways

• Income loss: Outdoor workers lose up to 9% of salary annually.
• Poverty multiplier: Extreme heat deepens existing inequalities.
• Health damage: Workers suffer chronic pain and reduced food intake.
• Regional disparity: Rajasthan sees the highest economic losses.
• Climate crisis: Rising temperatures worsen the cycle.

FAQ