With USD 12 billion in catastrophe losses in 2023, floods, cyclones, and earthquakes continue to threaten lives and livelihoods across the country

On Tuesday a tragic incident happened in Uttarkashi district of Uttarakhand where 4 people lost their lives and many are missing after a cloudburst in dharali village. In India every year we can see a large part of our country suffers from natural disasters either its flood, landslide, cloudburst or Tsunami. India’s geography and climatic condition makes it more catastrophe prone. In these tragedies India loses human as well as economic resources over the years.

A report by Swiss Re India incurred total economic losses of USD 12 billion (over Rs. 1 lakh crore) due to natural catastrophes in the calendar year 2023. This figure is higher than the 10 year average of USD 8 billion (2013-2022). Highlighting the growing impact of extreme weather events and seismic risks in the country. The primary causes of these losses were floods in northern India and North East India along with Tropical Cyclones Biparjoy and Michaung, the report said.

Floods continue to be the most destructive natural disasters in India, accounting for approximately 63 per cent of annual economic losses. Some of the major flood events include, The Mumbai floods of 2005, which caused economic losses of USD 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 led to economic losses of USD 6.6 billion (in 2024 prices).

Floods remain the leading cause of economic losses from natural disasters in India, accounting for approximately 63 per cent of the annual losses. Major flood events in recent history include the Mumbai floods of 2005, which caused economic losses of USD 5.3 billion (in 2024 prices); the Uttarakhand floods in 2013; the Jammu and Kashmir floods in 2014; the Kerala floods in 2018; and the northern India floods in 2023. The Chennai floods of 2015 alone resulted in losses amounting to USD 6.6 billion (in 2024 prices).

tropical cyclones and tsunamis also pose major threats. Cyclone Biparjoy, which made landfall in Gujarat in 2023, disrupted operations at major ports such as Mundra and Kandla, and caused widespread damage across Maharashtra and Rajasthan. Similarly, Cyclone Michaung led to extreme rainfall and significant damage in Chennai. Coastal regions, especially along India’s 5,700 km eastern coastline, are highly vulnerable to tsunamis, as seen during the 2004 Indian Ocean tsunami, which devastated parts of Tamil Nadu and the Andaman & Nicobar Islands.

Earthquakes are another pressing concern. About 58.6 per cent of India’s landmass is prone to moderate to high intensity earthquakes, with cities like New Delhi and Ahmedabad particularly exposed. Potential epicentres lie in the Himalayan region, threatening not only Delhi but also other urban centres like Mumbai. A quake of the scale of the 2001 Bhuj earthquake could result in significantly greater losses today, owing to the increased asset concentration in densely populated cities.