This paper tries to account for the economic loss due to natural disasters, as the depreciation of capital and provide the adjusted estimate of NDP. Systematic data on economic loss due to natural disasters are limited for all Indian states. Therefore, this paper provides a methodological framework for accounting for the depreciation of the capital due to natural disasters for all Indian states and provides an approximate estimate of adjusted NDP for all Indian states. Due to availability of systematic data on the economic loss due to natural disasters, time series estimate of adjusted NDP are provided for Odisha state which experiences maximum climatic natural disasters. Calculation of adjusted NDP will be very much useful for fiscal transfer from Union to States and other economic policy making.

The lockdown in India is having severe impact on each and every economy and Odisha is no different from others. Various agencies are providing different growth estimates for the national economies that ranges from a positive growth of four percent to a contraction of output by around five percent. There are very few agencies that provide growth forecast for the subnational economies. In this paper, I provide growth estimates for Odisha, an Indian state in eastern part, for the year 2020-21. Our estimation shows a drastic contraction of output for Odisha in 2020-21 to the extent of 15.6 to 20.7 percent. The first quarter of 2020-21 will have the maximum contraction. Odisha may see positive growth of output only in the third quarter and in subsequent period. Except agriculture and allied activities all other sectors will have a contraction in the output