Disaster risk management financing in India review

This report provides a comprehensive review of Disaster Risk Management (DRM) financing in India, with the aim of informing the deliberations of the Sixteenth Finance Commission (SFC). India's geographic and climatic diversity makes effective DRM financing critical to safeguarding communities, infrastructure, and economic stability. The country's DRM financing framework is anchored by the Disaster Management Act 2005, which established the National Disaster Management Authority (NDMA) as the central institutional body. Building on this foundation, the Fifteenth Finance Commission (FFC) introduced landmark reforms that significantly expanded the scope and scale of DRM financing through the creation of the National Disaster Risk Management Fund (NDRMF) and State Disaster Risk Management Funds (SDRMF). This report presents a detailed analysis of the implementation of FFC recommendations and allocations related to DRM, drawing lessons from past experience to guide future policy decisions. By examining both the institutional framework and the practical application of DRM financing mechanisms, the report seeks to contribute to a more resilient, equitable, and effective disaster risk management system in India, providing the SFC with evidence-based insights to strengthen and refine DRM financing arrangements for the years ahead.