As a result of rising temperatures, India is predicted to lose about 5.8% of its daily working hours by 2030, which will reduce productivity and reduce tax revenue collection, according to a recent report released on Thursday by the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP).
“The problem is most severe for outdoor workers, particularly those employed in agriculture and construction, but also relevant for indoor factory workers. With falling labor productivity and economic output, rising temperatures are expected to result in the collection of lower fiscal revenues,” states the report titled ‘Economic and Social Survey of Asia and the Pacific 2024’.
India increased food subsidies by 1.2% of GDP in 2022 to address rural poverty. The analysis highlights the importance of electricity, irrigation, and fertilizer support. Still, it emphasizes the need for further investment in climate-resistant agriculture to mitigate the impact of climate change on public finances.
