India has strongly advocated for the establishment of a dedicated global funding mechanism to bolster disaster risk reduction (DRR) efforts worldwide. This call was made at the Ministerial Roundtable on DRR Financing in Geneva on June 4, 2025, by Dr. P.K. Mishra, Principal Secretary to the Prime Minister of India.
Dr. Mishra emphasized that financing for disaster risk reduction is crucial for a country's ability to safeguard development gains in the face of escalating climate and disaster threats. He highlighted that a robust and responsive DRR financing architecture is central to resilience. He commended the United Nations Office for Disaster Risk Reduction (UNDRR) and its partners for convening the discussion and acknowledged Brazil and South Africa for sustaining global dialogue through their G20 presidencies.
To illustrate India's commitment and progress in this area, Dr. Mishra shared the nation's journey in DRR financing. He noted that initially, allocations for DRR by the Finance Commission were a mere INR 60 million (approximately USD 0.7 million). However, today, the outlays under the 15th Finance Commission have surged to INR 2.32 trillion (around USD 28 billion). This considerable increase demonstrates India's proactive shift from reactive disaster management to a planned and predictable framework. The Disaster Management Act of 2005 laid the foundation for rule-based fund transfers from national authorities to states and districts. India's approach ensures that budgets cover preparedness, mitigation, relief, and recovery in an integrated flow of funds, with a focus on the needs of vulnerable communities. India's DRR financing model is built on four principles: dedicated funding for mitigation, preparedness, relief, and recovery; focus on the needs of vulnerable communities; accessibility of funds across all levels of government; and accountability and transparency with measurable impact.
Despite these advancements, Dr. Mishra pointed out a significant gap at the global level: the absence of a dedicated international mechanism to assist countries in establishing or strengthening their DRR financing frameworks. He proposed the creation of a global facility under the UN system, in partnership with multilateral development banks. This facility would provide catalytic funding, technical assistance, and a platform for knowledge exchange. It would assist countries in translating intent into action with clear, time-bound milestones. He also advocated for the development of diverse financial instruments such as insurance, risk pooling, and innovative funding mechanisms tailored to local affordability, noting that these instruments can complement public budgets without imposing unsustainable debt burdens. It is not enough to wait for disasters and then allocate funds; we need a mix of financial instruments that can smooth the impact of shocks
India's call for a dedicated global funding mechanism reflects a broader concern about the lack of global financing for addressing climate risks, as highlighted by Finance Minister Nirmala Sitharaman. While countries like India are committed to a greener future, they often have to rely on their own resources due to the absence of sufficient global funding. India is continuously engaging with multilateral institutions to ensure they have adequate leverage to finance climate action.
In conclusion, India is urging the international community to adopt concrete, time-bound measures and establish a dedicated global facility to support DRR financing. This commitment was reaffirmed, seeking enhanced collaboration with other nations to create an effective framework for disaster resilience, ensuring collective preparedness for an increasingly risk-prone world.
