Kerala's GSDP to be hit by Rs 108 bn due to rain and floods, says report

Tourism and the agro-based industries, are expected to suffer severe losses given the damage to infrastructure assets and the local crop

Kerala’s Gross State Domestic Product (GSDP) loss would amount to nearly Rs 108 billion due to the torrential downpour and floods, said a report by Acuité Ratings.

The calamity will expectedly affect the state’s finances due to impact on the GSDP and the likely rise in state borrowings to finance the reconstruction activities in the infrastructure sector such as roads.

Acuité estimated the state fiscal deficit to reach up to 5.4 per cent in FY19 from 3.3 per cent in FY18, which may only get partly offset by the grants-in-aid from the Central government and other sources.

Tourism and the agro-based industries, key