New Delhi [India], July 31 : Extreme heat is costing South Asia the equivalent of 31 million full-time jobs every year and could shrink the region's economy by nearly 7 per cent by 2050 if countries do not take adaptation measures, according to a new World Bank report. The report warned that rising temperatures are emerging as a major threat to employment, productivity and long-term economic growth.
Releasing its report, 'A Livable Future: Protecting Jobs and Growth from Extreme Heat in South Asia's Cities', the World Bank said, "Extreme heat already subtracts the equivalent of 31 million full-time jobs a year across South Asia,"while "without adaptation, rising heat could leave South Asia's GDP close to 7 per cent smaller by 2050, the steepest projected loss of any developing region."
The report said South Asia is expected to add around 280 million working-age people by 2050, but rising temperatures are making it harder to create productive jobs by reducing labour productivity, lowering earnings and discouraging investment. "Heat reduces productivity in existing work, discourages the investment that would create new jobs, and shifts labour demand toward cooling and heat-resilient industries," it said.
World Bank Vice President for South Asia Johannes Zutt said, "South Asia's cities are central to the region's future, but rising temperatures are putting jobs, livelihoods, and economic growth at risk."
For India, the findings come as the government is pursuing ambitious long-term growth plans, including its vision of becoming a developed nation under the Viksit Bharat 2047 roadmap, expanding manufacturing under Make in India, strengthening global supply chain participation and creating millions of new jobs. The report cautions that rising temperatures could undermine these efforts by becoming "a structural constraint on productivity, livability, and economic growth," particularly as cities continue to expand.
The report also noted that around 70 per cent of the urban infrastructure India will need by mid-century is yet to be built, giving policymakers an opportunity to integrate heat resilience into future housing, transport and urban infrastructure. It added that India is preparing the Alleviating Heat Stress by Enhancing Production of Affordable Cooling Devices (AHEAD) programme with World Bank support, which could help expand domestic manufacturing of affordable cooling equipment and create close to 3.7 million jobs by 2040.
Calling for heat to be treated as a development priority rather than a seasonal emergency, the report recommended investing in heat-resilient infrastructure, strengthening Heat Action Plans, expanding early warning systems, protecting vulnerable workers, promoting sustainable cooling and mobilising greater public and private investment to help cities remain productive and competitive in a warming climate.