India faces a setback of Rs. 6.5 lacs crore due to drought

The Indian economy is going to face a setback of about 6.5 lacs crore due to the dreadful drought condition in 10 states of the country, as put forth by a report. Even if there is normal monsoon this year, the impact of the drought is likely to remain atleast for the next six months on the economy, forecasts the said report.


Presently, the situation is very bad in 256 districts of the 10 states of the country. The 33 crore population of these severely affected drought districts have been facing water shortage, health related problems of women and children, loss of live stock due to shortage of water and food, increased migration towards cities and damaged agriculture. Likewise, the rural areas have to face many such horrible effects of the drought.

‘Assocham’ has stated in its study report that the drought condition this year has been more terrible due to low rainfall continuously for the past two years, forcing the government to divert the development funds to meet the ill effects of drought. This report also states that the rising migration in the urban areas has increased inflationary pressure and pressure on the infrastructure of the cities.

The government also has to bear the cost of subsidies on Electricity, Fertilizers etc, that is being provided to the drought hit areas. Due to this there is considerable pressure on the State and Central Government’s treasury states the report. Assocham has estimated that the government will have to spend Rs. 3000 per person so as to provide water, food and health amenities in the drought hit areas. It will cost the India economy about one lac crore per month. The subsidies given to the drought hit areas, the load on the infrastructure and other supportive programmes will cost about 6.5 lacs crore burden on the national economy, estimates the report.

The drought will hike the currency inflation and it will be a challenge for the government to plan big strategies to face it, mentions Assocham. Meanwhile as per the information given by the Government in the Lok Sabha , the impact of this drought is seen in around 1.5 lacs villages of the country. The Government has made it clear that all out efforts are being taken to tackle this situation.

Directions from the Supreme Court

The Supreme Court severely pulled up the states of Bihar, Gujarat and Haryana for not yet declaring drought. The Supreme Court has directed to amend the rules wherever deemed necessary so as to set a time limit for declaring Drought. The Court also asked to form an emergency fund independently to tackle this drought situation. Apart from this the Court has also informed to form a special work force for the same.

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