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Economic consequences of the Gujarat earthquake

2001

https://doi.org/10.2307/4410512

Abstract
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This study estimates the economic impact of the Gujarat earthquake, focusing on losses to immovable and movable assets, economic losses due to business interruption, and public sector costs. The paper highlights the importance of assessing casualties, job disruption, and fiscal impacts while noting the challenges in quantifying losses due to inadequate building inventories. It discusses the implications for relief and rehabilitation efforts, offering insights into future disaster management strategies.

Key takeaways
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  1. The Gujarat earthquake resulted in over 18,000 deaths and 166,000 injuries, significantly affecting Kutch district.
  2. Economic losses from the earthquake are estimated at Rs.14,454 crore, with public sector costs and household income losses highlighted.
  3. A lack of building inventory complicates accurate loss estimation, impacting policy and assistance planning.
  4. Reconstruction efforts face fiscal challenges, increasing the state's deficit amidst pre-existing financial distress.
  5. The earthquake's immediate impact on Gujarat's GDP is minimal, with long-term recovery dependent on effective reconstruction policies.

References (1)

  1. Source: "Banking Statistics: Basic Statistical Returns", Vol. 28, March 1999, RBI, pp. 55-56 for March 1999 and "Banking Statistics: Quarterly Handout -December 1999", Banking Statistics Division, Department of Statistical Analysis and Computer Services, RBI, p. 32.

FAQs

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What were the main economic losses due to the Gujarat earthquake?add

The earthquake resulted in an estimated loss of Rs. 14,454 crore to Gujarat's economy, with damaged immovable and movable assets contributing significantly to this figure.

How did the earthquake affect employment in affected regions?add

Approximately 4.88 lakh people are estimated to become unemployed due to direct damages in various industries, with 80% loss anticipated in Kutch district.

What percentage of the casualties were reported in Kutch district?add

Kutch district accounted for 92% of recorded deaths and 82% of injuries from the earthquake.

How did the earthquake impact Gujarat's fiscal accounts?add

The earthquake likely increased Gujarat's fiscal deficit significantly, with relief and recovery measures expected to cost around Rs. 10,031 crore by 2002-03.

What is the expected impact on Gujarat's GDP from the earthquake?add

The earthquake's impact on Gujarat's GSDP is estimated to be about Rs. 2,475 crore, a quarter percent of the state's economy.

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