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Economy News, Latest Economic News Today | The HinduBusinessLine

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Disaster resilience needs to be integrated into infra pro...
2026-04-22 · via Economy News, Latest Economic News Today | The HinduBusinessLine
Anuradha Thakur, Secy Dept of Economic Affairs, Ministry of Finance (file photo)

Anuradha Thakur, Secy Dept of Economic Affairs, Ministry of Finance (file photo) | Photo Credit: MOORTHY RV

Economic Affairs Secretary Anuradha Thakur on Wednesday pitched for embedding disaster resilience into infrastructure projects. She also disaster not just an environmental concern, it is fundamentally a development and a fiscal challenge.

She was speaking at an event — Mobilizing Finance for Resilience — organised by Coalition for Disaster Resilient Infrastructure (CDRI) here. During the event, a report, titled ‘Mainstreaming Disaster Resilience into Infrastructure Projects in India’ prepared by the CDRI, in collaboration with Economic Affairs Department, was also released.

“We recognize that resilience is not an add-on. It is a must, and it has to be embedded as we plan, finance, and execute infrastructure. And therefore, it needs to be decided at the project design stage not necessarily only after the disaster. We believe that resilience needs to be treated not as an afterthought, but as a guiding principle in project structuring, financing, and delivery,” Thakur said.

She highlighted that over the past five decades, the number of disasters globally has increased nearly fivefold, and annual losses to infrastructure, now run into hundreds of billions of dollars. For finance ministries and policymakers across the globe, it’s not just an environmental concern, it is fundamentally a development and a fiscal challenge. 

“Every damaged, road, disrupted power system, flooded urban network translates into lost growth, strained budgets and setbacks to livelihoods. The question therefore before us is no longer whether and what scale the disaster would happen, but whether our infrastructure is ready going forward or not,” Secretary said while adding that every disaster leaves behind not just damage, but a huge bill for the exchequer. so that growth can continue, can hobble back, strengthen, and continue. 

She emphasised for three key messages. First, resilience makes economic sense. Investing upfront to strengthen infrastructure reduces long-term costs, avoids disruptions, and safeguards public finances. It is not merely a safeguard, in fact. It is a productivity-enhancing investment. Second, resilience needs to be mainstreamed and not marginalized. It should be Built into appraisal guidelines, procurement processes, and financing structures, this would require institutional alignment across ministries, sectors, and implementing agencies. And third, partnerships are essential.

Meanwhile, the CDRI report said warned that climate and disaster risks pose significant fiscal threats, with global infrastructure losses estimated at $845 billion annually and actual losses far higher. India’s $4.51 trillion infrastructure investment target by 2030, and its ambition to become a $30 trillion economy by 2047, depend on embedding resilience into infrastructure systems.

Key findings showed that roads, railways, and power sectors are highly exposed to disaster risks, while pilot projects using CDRI’s Resilience Cost-Benefit Analysis (RCBA) tool demonstrated returns on investment up to 12:1. “Disaster resilience is about protecting public finances and securing development gains. Investing in resilient infrastructure today reduces fiscal shocks tomorrow and is one of the smartest investments governments can make.” said Amit Prothi, DG, CDRI.

The report called for embedding resilience clauses in contracts, integrating disaster risk assessments across the project lifecycle, strengthening hazard data systems, building institutional capacity, and the creation of innovative financing mechanism

Published on April 22, 2026