Disaster risks have evolved from environmental concerns into a significant development and fiscal challenge for governments, Department of Economic Affairs Secretary Anuradha Thakur said on Wednesday.
Speaking at a conference organised by the Centre for Disaster Resilient Infrastructure (CDRI), Thakur said disruptions caused by disasters now directly impact economic growth, public finances and livelihoods.
“For finance ministries and policymakers across the globe, it’s not just an environmental concern—it is fundamentally a development and a fiscal challenge,” she said.
Thakur highlighted a “fundamental shift” in global disaster risks, noting that such incidents have increased nearly fivefold over the past five decades.
“The question before us is no longer whether or at what scale the disaster would happen, but whether our infrastructure is ready,” she said.
Each disaster leaves behind not just physical damage but also a significant fiscal burden, she added.
Thakur stressed that resilience must be embedded into infrastructure projects from the design stage rather than treated as an afterthought.
“We believe that resilience needs to be treated not as an afterthought but as a guiding principle in project structuring, financing and delivery,” she said.
She added that investing in resilience reduces long-term costs, avoids disruptions and safeguards public finances.
“It is not merely a safeguard; it is a productivity-enhancing investment,” she said.
According to Thakur, resilience must be mainstreamed into appraisal guidelines, procurement processes and financing structures.
She emphasised the need for institutional alignment across ministries and agencies to integrate resilience into policymaking.
Thakur said partnerships are critical, especially for developing countries that face higher risks with limited resources.
She also called for the inclusion of proactive disaster risk financing frameworks in public finance systems to protect economic stability and ensure sustainable growth.
A report titled “Mainstreaming Disaster Resilience into Infrastructure Projects”, released at the event, identified five key gaps: standard contracts, project lifecycle processes, data and risk systems, capacity, and financing.
The report recommended mandatory hazard, risk and vulnerability assessments for high-priority projects, setting explicit hazard thresholds in contracts, and institutionalising resilience experts in appraisal systems.
It also proposed the creation of an India Infrastructure Resilience Fund to address financing gaps.
The recommendations aim to strengthen infrastructure planning and improve preparedness in the face of increasing disaster risks.
