India Loses 0.4% of Annual GDP to Natural Disasters Amid Rising Climate Risks in Emerging Asia
Data from the OECD reveal that India sustains annual economic losses equivalent to 0.4% of its GDP due to natural disasters. Between 1990 and 2024, India experienced a high frequency of hydrological disasters (floods and storms) and seismic events. The report highlights that Emerging Asia faces escalating threats, with an average of 100 disasters annually impacting 80 million people. Disaster risk finance has moved to the forefront of policy as the scale of economic loss escalates. India ranks second only to the Philippines in the World Risk Index among analyzed Asian economies, highlighting the need for enhanced adaptive capacity.
Key Points
- India loses approximately 0.4% of its GDP annually to natural disasters, primarily driven by floods, storms, and tropical cyclones.
- Emerging Asia has averaged 100 disasters per year over the last decade, affecting nearly 80 million people and causing significant economic damage.
- The World Risk Index calculates risk based on a geometric mean of exposure and vulnerability (susceptibility, coping capacity, and adaptive capacity).
- Disaster risk finance is becoming a critical policy priority to mitigate the rising economic costs of climate-related events in the region.
Exam Facts
- India's annual loss due to disasters is 0.4% of GDP based on data from 1990-2024.
- India ranks second in the World Risk Index 2025 among the Asian economies featured in the OECD report.
- The data is sourced from the OECD development centre's 'Economic Outlook for Southeast Asia, China and India 2025'.
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