Overview
- WRI India released a vulnerability assessment on June 26, 2026 based on a survey of 310 manufacturing MSMEs in Surat, Chennai and Coimbatore that documents widespread operational disruption from extreme heat and flooding.
- Heat-related impacts are pervasive, with 92% of surveyed firms reporting operational effects and 78% saying worker productivity fell because of high temperatures.
- Worker health and attendance are suffering: 41% of firms reported heat-related illnesses and more than half linked rising absenteeism to heat exposure.
- Floods force closures and create cascading disruptions across logistics, labour availability and supply chains, with over 90% of firms in inundated areas reporting disruption and about three-quarters reporting closures during flood events.
- Most MSMEs rely on short-term coping and have weak preparedness—only 13% have a formal continuity plan, 21% keep emergency funds and 17% hold flood insurance—so the report calls for coordinated finance, data and technical support to protect nearly 35% of India’s manufacturing output.