Nearly 50% of the public infrastructure in India is unprepared for disaster planning and management and needs greater attention, as per a CBRE survey on select large infrastructure assets on risk management parameters.
India is grappling with a significant increase in both natural and man-made disasters, posing a threat to the economy, population, and long-term sustainable development, the real estate consultancy firm says.
The vulnerability to disasters is further exacerbated by a confluence of factors, including changing demographic and socio-economic conditions, unplanned urbanisation, development within high-risk zones, environmental degradation, climate change, and geological hazards, it says.
The escalating frequency and intensity of disasters have far-reaching consequences for India, warns CBRE. Floods, extreme temperatures, and cyclones have become more common and severe, causing widespread damage to infrastructure, loss of lives, and disruption of livelihoods. “The country is increasingly exposed to man-made risks such as industrial accidents, cyberattacks, and public health emergencies,” it says.
Better risk management practices can contribute to the longevity of assets, according to CBRE. Regular inspections, maintenance, and upgrades can help identify and address potential vulnerabilities, reducing the likelihood of damage and ensuring the continued functionality of critical public infrastructure, it says.
“Inadequate risk management is a primary cause of the issues we see in infrastructure projects. This leads to direct financial losses, hindered GDP growth, and negative impacts on reputation and society. While India is progressing towards its next growth mile, backed by a resilient economy and tremendous infrastructural development, it is extremely crucial to take a proactive stance to unlock a future that is sustainable,” says Anshuman Magazine, chairman and CEO - India, Southeast Asia, Middle East & Africa, CBRE.
“As infrastructure will continue to be the key growth driver, it is imperative to adopt practices that are innovative, agile, and futuristic. A clear roadmap that takes us towards this goal with precision and swiftness,” Magazine adds.
Infrastructure projects have become and will continue to become significantly larger and more complex, losses due to the cost of undermanaged risks will continue to increase, says CBRE.
“As India continues to face growing challenges, it is imperative to invest in disaster preparedness and resilience. By adopting innovative approaches and prioritising risk management, we can protect the population, safeguard economy, and build a more sustainable future,” says Rajesh Pandit, managing director, Global Workplace Solutions, India & Property Management, India, Southeast Asia, Middle East & Africa, CBRE.
