Drought in 10 states of India is estimated to impact the economy by at least Rs 6,50,000 crore as about 33 crore people across 256 districts are facing the grave situation. The Assocham study reveals that two consecutive years of poor Monsoon has led to grave water shortage and serious challenges of survival in Maharashtra and Karnataka.
"The rough estimate indicates that this drought will cost national economy at least Rs 6,50,000 crore or say $100 billion," the excerpts of the study in The Economic Times said.
The impact of drought is likely to remain for at least six months more because one needs resources and time to revive the activities on ground even if Monsoon is predicted to be normal this year, it said.
Following map shows the ten drought hit Indian states.
The loss of subsidies on power, fertiliser and other inputs multiply the impact, it added.
On economic impact of drought, the study said the financial resources get diverted from development to aid and the possible migration to other places puts pressure on urban infrastructure and supplies.
The drought would create inflationary pressures making the food management an imperative challenge for the government and the policy
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Map Credit: mapsofindia.com