As India grapples with intensifying heatwaves, a looming threat casts a shadow over the country’s economic engine: a significant drop in workplace productivity. With temperatures in many Indian cities breaching 45°C during peak summer months, the impact on worker health, efficiency and economic output is no longer speculative—it’s real, it’s growing, and it’s disproportionately affecting the most vulnerable.

Decades of climate and labour research have established a strong inverse relationship between rising ambient temperatures and productivity. According to a 2021 report by the International Labour Organization (ILO), heat stress could result in productivity losses equivalent to 80 million full-time jobs globally by 2030. The majority of these losses are expected in South Asia, with India among the worst-affected.

The physiological reason is straightforward: when temperatures soar, the human body expends more energy on thermoregulation, leaving less energy for physical or cognitive tasks. This is especially critical for outdoor and manual labourers, but even desk-bound office workers suffer reduced concentration, fatigue, and decision-making capacity in inadequately cooled environments.

India is uniquely vulnerable. The Climate Transparency Report 2023 indicates that average temperatures in India have risen by 0.7°C between 1901 and 2018. But more alarming is the increased frequency, intensity, and duration of heatwaves in recent years. Cities like Delhi, Nagpur, and Jaipur are now facing 10–15 more extreme heat days annually than two decades ago.

In a tropical country where over 80% of the workforce operates in the informal sector, and many work without access to climate-controlled environments, heat stress isn't just a discomfort—it’s an occupational hazard.

Who’s affected the most?

1. Construction and outdoor workers

According to the National Sample Survey, nearly 11% of India’s workforce is in construction, often working in direct sunlight. Labourers in cities report feeling dizzy, dehydrated, and less focused after just a few hours of work during heatwaves.

2. Agricultural workers

Agriculture employs nearly 43% of the Indian workforce, and rising temperatures have not only hurt crop yields but also worker productivity. A study from the Indian Council of Agricultural Research (ICAR) found that productivity drops by 15-20% during high-heat periods, especially in northern and central India.

3. Factory workers and MSMEs

In industrial belts like Ludhiana, Pune, or Coimbatore, many MSMEs lack air conditioning. Workers in textile, dyeing, and small manufacturing units report up to 30% decline in output during summer months due to frequent breaks and heat-related fatigue.

4. Delivery and logistics

With the rise of e-commerce, delivery workers are out on roads for 8–10 hours daily. They report increased cases of heat exhaustion, fainting spells, and slower delivery rates.

5. Domestic workers and informal sector

Over 50 million domestic and informal sector workers, especially women, face rising temperatures in cramped urban housing or under poorly ventilated conditions. Reduced work hours mean reduced earnings, creating a vicious cycle of poverty and heat vulnerability.

Urban vs rural divide

While rural workers face the brunt of outdoor labour and agricultural disruptions, urban India isn't spared. Power outages, poor ventilation in high-density housing, and rising cooling costs mean that both formal and informal workers in cities are struggling to maintain productivity.

According to the McKinsey Global Institute, by 2030, India could lose 2.5–4.5% of GDP annually due to productivity losses from heat stress. That’s a staggering Rs 10–17 lakh crore in today’s terms. Cities could experience over 200 million lost work hours annually.

A 2023 report by the Adrienne Arsht-Rockefeller Foundation Resilience Center also stated that over 480 million Indians are currently exposed to extreme heat conditions that impact their ability to work.

While some states like Gujarat, Maharashtra, and Odisha have Heat Action Plans (HAPs) in place, experts argue that most of these are reactive, not preventive. The National Disaster Management Authority (NDMA) issued guidelines for heatwave preparedness, but these largely focus on health, not productivity.

The Ministry of Labour and Employment has issued advisories for modifying work hours during peak heat, providing shaded rest areas, and ensuring water availability. However, implementation remains patchy and unenforced, especially in the informal sector.

Therefore, employers are now exploring tech-driven mitigation strategies:

• Passive cooling materials in building design

• Heat-reflective uniforms

• Shift scheduling tools that avoid peak heat hours

• Affordable wearable cooling devices for field workers

Some startups are even working on AI-powered heat index forecasting to plan worker shifts accordingly.

What needs to change?

• National Heat Resilience Policy: Move beyond health alerts to include workplace regulations and funding.

• Mandatory Work-Hour Flexibility during red alert days

• Heat Resilience as ESG Criteria: Encourage corporates to include climate adaptation in CSR and ESG reporting.

• Incentivise Cooling Solutions for small businesses and factories

Global lessons India can learn from

Several countries grappling with extreme heat have taken proactive steps to safeguard worker health and productivity—offering valuable lessons for India. Bangladesh’s garment sector, a major employer in the region, has implemented mandatory cooling periods and staggered shifts to help workers cope with rising temperatures in congested factory environments. This not only protects worker well-being but also ensures uninterrupted production flow by minimising the risk of heat-related illnesses. Such adaptive measures show how industries can align labour welfare with operational efficiency in high-heat settings.

Qatar, under global scrutiny during the FIFA World Cup construction boom, responded by banning outdoor work during peak summer hours, a move designed to prevent heatstroke and fatal accidents among its large migrant workforce. In the U.S., California has gone a step further by legislating access to shade and hydration breaks for outdoor workers, with strict penalties for violations. These approaches combine regulation with enforcement, setting benchmarks India can adapt—especially for sectors like construction, agriculture, and logistics where workers are most vulnerable to extreme heat.