According to the Swiss Re report, natural catastrophes caused significant losses of $12 billion (over Rs 1 lakh crore) in India in calendar year 2023. 

Key Highlights of the Report

• Economic Losses in 2023:
  • India suffered total economic losses of $12 billion (over ₹1 lakh crore) in 2023 due to natural catastrophes.
  • These losses were significantly higher than the 10-year average of $8 billion (2013-2022).
  • The primary causes of these losses were floods in northern India and Sikkim, along with Tropical Cyclones (TC) Biparjoy and Michaung.

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• Key Causes of Economic Losses
  • Floods as a Major Cause of Losses:
    • Floods account for approximately 63% of annual economic losses in India.
    • Major flood events include:
      • The Mumbai floods of 2005, which caused economic losses of $5.3 billion (in 2024 prices).
      • The Uttarakhand floods in 2013, Jammu and Kashmir floods in 2014, Kerala floods in 2018, and northern India floods in 2023.
      • The Chennai floods of 2015, which caused economic losses of $6.6 billion (in 2024 prices).
  • Tropical Cyclones (TC) and Tsunamis
    • Tropical Cyclones:
      • Cyclone Biparjoy (2023): Made landfall in Gujarat, shutting down ports (e.g., Mundra, Kandla) and causing widespread damage in Maharashtra and Rajasthan.
      • Cyclone Michaung (2023): Resulted in extreme rainfall and significant losses in Chennai.
    • Tsunamis: Coastal regions, especially along the eastern coast, are prone to tsunamis.
      • The 2004 Indian Ocean Tsunami caused widespread destruction in Tamil Nadu and the Andaman & Nicobar Islands.
    • Vulnerability: India’s 5,700 km coastline is highly exposed to cyclones and tsunamis, impacting urban centers, ports, and industries​​.
  • Earthquake Vulnerability: 58.6% of India’s landmass is prone to moderate to high-intensity earthquakes.
    • New Delhi and Ahmedabad are particularly exposed to earthquake risks.
    • Potential earthquake epicentres include the Himalayas, which could impact Delhi, and regions near urban centres like Mumbai or Delhi.
    • An earthquake similar to the 2001 Bhuj earthquake could cause much greater losses today due to increased asset concentration.

About Natural Catastrophes

•  A natural catastrophe is an unexpected event, caused by nature, such as an earthquake or flood, in which there is a lot of suffering, damage, or death.

Impacts of Natural Catastrophes

• Economic Impacts

  • Direct losses: Direct losses include damage to infrastructure, industries, homes, and agricultural lands. For instance, ₹1 lakh crore (USD 12 billion) in economic loss was recorded in 2023 due to floods and cyclones.
  • Indirect losses: Indirect losses result from the disruption of industrial and economic activities, such as the shutdown of ports and supply chains during Cyclone Biparjoy in Gujarat, and a decline in agricultural productivity due to droughts and floods.
  • Insurance gap: Over 90% of natural disaster-related losses in India remain uninsured, increasing financial strain on households and businesses.

• Humanitarian Impacts

  • Loss of Lives and Livelihoods: Natural catastrophes lead to significant loss of lives and livelihoods. For example, the 2004 Indian Ocean Tsunami and Northern India floods (2023) caused high casualties and displacement of people.
  • Health and Vulnerable Groups: These disasters also increase the risk of waterborne diseases and disproportionately affect vulnerable groups, including economically weaker sections, women, children, and differently-abled individuals.

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• Environmental Impacts

  • Ecosystem Degradation: Natural disasters degrade ecosystems, leading to loss of biodiversity and damage to forests, wetlands, and coastal ecosystems.
  • Soil and Riverbank Damage: Soil erosion and riverbank destabilization are common consequences of floods.
  • Climate Change Feedback: Climate change intensifies natural disasters, creating a feedback loop of destruction and recovery costs.

• Social Impacts

  • Displacement and Migration: Displacement and migration are common outcomes, as people lose their homes and livelihoods in disaster-hit regions. 
    • For example, many residents of hill regions are forced to migrate due to landslides and floods.
  • Cultural Heritage Damage: Damage to cultural heritage, including historical monuments and temples, is another significant impact of disasters such as earthquakes and floods.

• Developmental Impacts

  • Setback to Progress: Natural catastrophes set back developmental progress by destroying infrastructure and assets. 
    • For instance, regions like Gujarat, Tamil Nadu, and Maharashtra face severe economic strain after major disasters.
  • Increased Poverty: Economic losses disproportionately affect low-income households, increasing poverty levels and inequality.

• Policy and Governance Impacts

• • Fiscal Strain: Natural disasters impose fiscal strain on governments, as they increase expenditure on disaster relief and recovery efforts. 
    • This often diverts funds from development programs.
  • Policy Reforms: These events drive reforms in disaster risk reduction policies and lead to the establishment of institutions such as the National Disaster Management Authority (NDMA) under the Disaster Management Act, 2005.

India’s vulnerability to natural catastrophe

• Geographical Location:
  • Himalayan Region: Prone to earthquakes, landslides, and GLOFs (glacial lake outburst floods).
  • Coastal Areas: A 7,500 km coastline exposed to cyclones, tsunamis, and storm surges, affecting urban centers and industries.
  • River Basins: Flooding, particularly during monsoon, is common in regions like the Ganges, Brahmaputra, and Godavari.
• Climatic Conditions: India’s agriculture relies heavily on monsoons, making erratic rainfall a threat to food and water security.
  • Many regions, particularly in the western and central parts, suffer from reduced water availability and crop failure due to droughts.
• High Population Density: Rapid population growth and urbanization in hazard-prone areas, particularly in informal settlements, amplify the risks of floods, earthquakes, and landslides.
  • In 2015, Chennai’s drainage system was overwhelmed by flooding due to unchecked encroachment on water bodies.
• Socio-Economic Factors: Communities in poverty are less equipped to prepare for and recover from disasters, exacerbating the impacts.
  • During the 2013 Uttarakhand floods, rural and impoverished communities in the hilly areas were disproportionately affected due to inadequate infrastructure and preparedness.
• Deforestation and Environmental Degradation: Deforestation reduces the ability of ecosystems to mitigate the impact of landslides, floods, and storm surges.
  • Uncontrolled agricultural practices and overgrazing lead to soil erosion, especially in arid and semi-arid regions.
• Industrialization and Infrastructure: Rapid development without disaster-resilient infrastructure and the proximity of hazardous industries to populated areas amplify vulnerability during natural catastrophes.
• Weak Disaster Management Systems: The presence of multiple nodal authorities for different disasters in India, such as the National Center for Seismology for earthquakes and the Department of Mines for mining disasters, creates coordination delays due to overlapping responsibilities and lack of a central fusion center.

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Policy Framework for Disaster Management in India

• Disaster Management Act 2005: The National Disaster Management Act was enacted in 2005, which brought a paradigm shift in India’s approach to disaster management. 
  • The approach shifted to preparedness, prevention and planning from earlier response and relief centric approaches.
  • Institutional Framework
    • National Disaster Management Authority (NDMA): Apex body chaired by the Prime Minister and coordinates disaster management efforts at the national level.
    • State Disaster Management Authorities (SDMAs): Headed by Chief Ministers, implement disaster management policies and plans at the state level.
    • District Disaster Management Authorities (DDMAs): Led by District Collectors; manage localized disaster responses and implement national and state policies at the district level.
• National Policy on Disaster Management (NPDM): It was created in 2009 to provide a comprehensive framework for disaster management in India. 
  • It aims to shift focus from relief and response to a proactive strategy emphasizing prevention, mitigation, and preparedness.
  • Vision: To build a safe and disaster-resilient India through a holistic, multi-disaster-oriented approach.
  • Key Objectives of NPDM
    • Promotion of Prevention and Preparedness: Foster a culture of prevention, preparedness, and resilience across all levels of society.
    • Integration into Developmental Planning: Integrate disaster management strategies into the developmental planning process.
    • Early Warning Systems: Establish state-of-the-art forecasting and early warning systems supported by effective communication networks.
    • Community Participation: Enhance community participation to ensure last-mile connectivity in disaster management.
    • Disaster-Resilient Infrastructure: Develop disaster-resilient infrastructure and promote the use of sustainable technologies.
• National Disaster Management Plan (NDMP) – 2016
  • The National Disaster Management Plan (NDMP), established in 2016, aligns with the Sendai Framework for Disaster Risk Reduction (SFDRR), focusing on proactive disaster management rather than only response. 
  • It was created by the National Disaster Management Authority (NDMA) as part of India’s disaster management strategy.
  • Key Features of NDMP:
    • Risk Reduction and Preparedness: Emphasizes preventing and mitigating disaster risks, building resilience across government levels and society.
    • Four Priority Actions (aligned with SFDRR):
      • Understanding Disaster Risk: Improve risk awareness, databases, and community engagement.
      • Strengthening Disaster Risk Governance: Build effective governance structures at national, state, and local levels.
      • Investing in Resilience: Strengthen infrastructure and minimize vulnerabilities.
      • Enhancing Disaster Preparedness: Focus on early warning systems, evacuation plans, and capacity-building.
    • Role of Key Stakeholders: Involves central ministries, state governments, local bodies, and community-based organizations in disaster management.
• Coalition for Disaster Resilient Infrastructure (CDRI) 
  • It is a global partnership that aims to make infrastructure more resilient to climate change and disasters. 
  • The CDRI was launched by India in 2019 at the UN Climate Action Summit. 
  • Involved in CDRI: National governments, UN agencies and programs, Multilateral development banks, The private sector, and Academic institutions. 
  • Goals:
    • Support sustainable development, 
    • Ensure universal access to basic services, 
    • Enable prosperity and decent work, and 
    • Reduce the economic losses 
  • Secretariat: New Delhi, India

Recommendations for Mitigating Impacts of Natural Catastrophes

• Disaster Risk Reduction (DRR): Strengthen community engagement through training, and improve disaster management systems by enhancing coordination between national, state, and local authorities for more effective responses.
• Climate Change Adaptation: Promote climate-smart agriculture, implement sustainable water management practices, and restore coastal ecosystems to protect against the impacts of climate change.
• Resilient Infrastructure: Ensure the construction of disaster-resilient buildings and roads, and upgrade flood protection infrastructure like embankments and drainage systems.
• Early Warning Systems: Invest in improved forecasting technologies, and build capacity within communities to effectively use early warning systems and preparedness plans.
• Insurance and Financial Protection: Expand access to disaster insurance for individuals and businesses, and develop financial mechanisms like catastrophe bonds for faster recovery.
• Ecosystem-Based Resilience: Implement afforestation and reforestation programs to reduce erosion, and protect wetlands and mangroves as natural barriers against disasters.
• Sustainable Urban Development: Invest in green infrastructure to manage water resources effectively and reduce urban flooding, and enforce zoning regulations to prevent construction in high-risk disaster zones.
  • The G-Cans project in flood management is being implemented in Tokyo which channels overflowing water through tunnels to avoid flooding.
• Strengthening Governance and Policy: Integrate disaster risk reduction and climate resilience into national and state-level planning, and decentralize decision-making to empower local governments in leading resilience-building efforts.
  • In Denmark, 36.5% of the national GDP is spent at the local level for social services, allowing local bodies to tailor solutions to ground realities and experiment with innovative approaches.

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Conclusion

Natural catastrophes in India impose significant economic, social, and developmental costs. A comprehensive strategy involving infrastructure resilience, financial safeguards, community participation, and climate adaptation is crucial to mitigating these impacts. 

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