The impact of cyclones on assets and sales of manufacturing firms in India is examined econometrically using data on manufacturing companies for 2008–2019. We find that there is about a 4–6 per cent dip in sales and a 2–3 per cent dip in total assets of manufacturing firms following a cyclone incident in the district where the firms' plants are located. The fall in sales is bigger for relatively small-sized firms. For multi-plant firms with plants in different states, which are relatively bigger firms, the impact may be small or even negligible. By contrast, cyclones cause a fall in total assets for both big and small firms. The adverse effect of cyclones on sales and assets of manufacturing firms is relatively less for firms with a high trade-technology orientation. We also find that cyclones significantly raise the risk of business failure among manufacturing plants, more so among small plants.
