'The heat is making you poor': How rising temperature is draining your wallet

Produced by: Mohsin Shaikh

Labour Collapse

Extreme heat wiped out an average of 259 billion labour hours annually from 2001–2020. This loss, mainly affecting outdoor workers, could cost India up to 4.5% of its GDP by 2030.

Cooling Debt

Millions now face “heat poverty,” where families borrow money just to buy fans or coolers. The result? More debt, less disposable income, and a widening inequality gap as heat becomes a survival cost.

Crop Crashes

Heatwaves slashed wheat yields by 15–20% in 2022 and cut milk output by 15%, directly hitting rural incomes. Lower yields raise food costs and threaten food security across the board.

Price Surge

Scorching temperatures devastate vegetables, fruit, and livestock. Food inflation spikes, forcing the poor to spend more of their income on less food, amplifying malnutrition and financial stress.

Heat Illness

In 2024 alone, heatwaves led to over 100 deaths and 40,000 heat stroke cases. The resulting missed work, school, and rising medical bills devastate already vulnerable families.

Water Crisis

Reservoirs dropped to 35% of capacity in 2024, threatening irrigation and drinking water access. This jeopardizes crops, rural jobs, and increases community-level water conflicts.

Job Drain

India could suffer 34 million of the 80 million global job losses from heat-related productivity declines by 2030. The informal and daily wage sectors will bear the brunt.

Urban Burn

Cities trap heat through concrete and congestion, raising power bills and living costs. The poor pay more for cooling, while unreliable infrastructure strains under rising urban demand.

Growth at Risk

Heatwaves are already costing India up to 5.4% of GDP, with deeper losses likely if temperatures keep rising. Development, productivity, and poverty reduction are all on the line.