ABSTRACT

India, one of the developing countries with huge demographic dividend has been constantly facing devastating cost of natural disasters. In this study an attempt has been made to analyse the impact of natural disasters on human and economic capital in India. Besides, the study discussed different economic thoughts in relation to exogenous shocks like natural disasters. By using data from EM-DAT database, the study found that on average there has been threefold increase in the incidence of natural disasters which consumed huge chunk of population, number of people affected being even more overwhelming. In the recent years the economic damage due to natural disasters has also been catastrophic. Droughts and its associated famines although less in number are found to cause greater percentage of casualties and population affected. Economic damage in India is mainly associated with floods and earthquakes. The study highlights that due to greater vulnerability (in terms of weak economic conditions, widespread poverty, inequality, weak housing conditions, low medical and insurance coverage etc.); general masses are found to be more exposed which increases the severity of natural disasters in India.