WHAT HAPPENS TO AN ECONOMY WHEN IT'S TOO HOT TO WORK?

"India is emerging as one of the clearest examples of how extreme heat can become a structural economic constraint, particularly for developing economies dependent on physical labor. Unlike richer countries where growth is increasingly driven by services and indoor work, large parts of India’s economy — from construction and manufacturing to agriculture and logistics — still rely on millions of workers spending long hours outdoors or in poorly cooled environments. Lost labor from rising heat and humidity could jeopardize 2.5% to 4.5% of India’s gross domestic product by 2030, according to a 2020 study by the McKinsey Global Institute. A University of Chicago study published in 2021 found factory output in India fell by about 2% for each 1C rise in temperature amid reduced worker productivity and increased absenteeism. The Lancet Countdown on Health and Climate Change estimated that 247 billion potential labor hours were lost in India due to heat exposure in 2024, an increase of 124% from the 1990-99 annual average." Bloomberg Businessweek - June 12, 2026