Climate-Related Disruptions Affect MSME Productivity and Supply Chain Operations
News: A new World Resources Institute (WRI) report has revealed that India’s MSMEs are becoming increasingly vulnerable to climate-related disruptions, with extreme heat and floods severely impacting productivity, operations, and supply chains.
The assessment, based on surveys across Surat, Chennai, and Coimbatore, highlights a growing climate resilience gap among small businesses.
The report found that 92% of MSMEs experienced operational disruptions due to heat stress, while 78% reported reduced worker productivity. Flooding has also disrupted transport, delayed raw material supplies, and damaged inventory and machinery, affecting overall business continuity. Despite rising climate risks, most enterprises continue to rely on short-term coping measures instead of long-term resilience strategies. Only a small percentage have adopted solutions such as cool roofs, insulation, or flood mitigation infrastructure, underscoring the urgent need for stronger climate adaptation and business resilience initiatives.
Source: The Economic Times
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