Heat waves will have an adverse impact on GDP

The heat waves being witnessed in various parts of the country might have resulted in an increase in demand for FMCG items and durable goods, yet its impact will be felt on inflation amidst a sharp increase in prices of staple vegetables such as tomato, onion and potato. Prices of these commodities have seen a significant uptick, which is expected to keep food inflation elevated in the near-term. Power demand has gone up by 11.4 per cent between April and June from merely1.1 per cent in the year-ago period. The grim situation was that the South-West monsoon is 19 per cent below LPAm while monsoon in other regions has also been lower. In stark contrast, rainfall in the north-western parts that have been under a relentless heat wave is 51 per cent below LPA. While we will have to wait for Q1 interim results to assess the impact of heat wave on sales of related products, a BoB study shows that some major players in the segment have signalled robust sales in Q1.

Forget India, heat waves are expected to become more frequent and intense across the globe. Often overlooked, heat waves are one of the most dangerous natural hazards as they pose a significant health and safety risk for the globalworkforce. Almost half of the global population is now exposed to the high heat syndrome, including more than one billion workers. Not to mention, heatstroke can lead to decreased productivity, increased accidents and even fatalities. Annually, 22.85 million occupational injuries and 18,970 work-related deaths are attributable to excessive heat. By 2030, the equivalent of more than two per cent of the total working hours worldwide is projected to be lost every year. Certain occupations are especially at risk as they involve more physical effort and mostly in the outdoors. Industrial workers in indoor settings are also at risk if temperature levels inside factories and workshops are not regulated properly.

At high heat levels, performing even basic office and desk tasks can be challenging as mental fatigue and physiological and cognitive decline set in due to heat strain. Exposure to excessive heat can also lead to serious health risks, including heatstroke and even death. Proactive measures from organisations are crucial to mitigate these risks and safeguard worker wellbeing and productivity. Organisations must go beyond the basic heat stress prevention and integrate heat stress risk assessments into their health and safety policies. Furthermore, training employees to recognise early signs of heat illness is critical. By fostering a culture of heat awareness and encouraging frequent hydration and breaks during peak temperatures, organisations can empower their workforce to stay safe and healthy. Moreover, sluggish monsoon leading to subpar kharif sowing could queer the pitch further for food inflation, which already remains elevated even as some of the economists were hopeful of an improvement in the rainfall as the season progresses.