India's water deficit creates Rs 20 lakh crore investment opportunity by 2030
New Delhi, June 30
India could face water demand that is double its available supply by 2030, creating over Rs 20 lakh crore investment opportunity in the next decade, a report said on Tuesday.
The report from PL Capital said that investment opportunities span across water treatment, wastewater recycling and sewage infrastructure.
India, home to nearly 18 per cent of the world's population but with only about 4 per cent of global freshwater resources, is confronting growing scarcity driven by urbanisation, fast industrialisation, groundwater depletion and rising agricultural use. The report added that such a situation makes water security a national concern, warranting significant investments in treatment, recycling, distribution, and storage systems.
"In contrast to other infrastructure-related trends, which may be associated with economic cycles, the investments in water security are structural, policy-driven, and mandatory for sustainable development," said Vikram Kasat, Chief Business Officer-Advisory, PL Capital.
"Increasing urbanisation, the growth of industries, and higher environmental standards provide for a long runway of growth in water purification, water reclamation and recycling, as well as in desalination and reuse facilities," he added.
Initiatives from the government such as Jal Jeevan Mission, AMRUT 2.0, and Namami Gange, as well as increased allocations through the Ministry of Jal Shakti, are making investments towards better access to clean water, improved sewerage infrastructure, and enhanced wastewater treatment.
Sewage treatment is the biggest opportunity segment in the larger water infrastructure ecosystem, the report said, noting an excess of 72,000 million litres of sewage per day.
The report noted capacity shortfall for treating these volumes leading to a lot of waste water discharging into the environment. Such a huge infrastructure deficit is expected to attract investments into sewage treatment and wastewater reuse projects.
New emerging industries such as data centers, semiconductors, electronics manufacturing, green hydrogen, and specialty chemicals are expected to become major consumers of industrial ultra-pure water.
— IANS
Reader Comments
As someone living in Bangalore, I see water tankers daily and it breaks my heart. Rs 20 lakh crore investment sounds massive but we need to ensure it trickles down to the ground level. Also, why are we still allowing industries like data centers and green hydrogen to guzzle ultra-pure water when basic drinking water is scarce? Policy and investment must go hand in hand with conservation!
Interesting perspective from an economic point of view. In Australia we've faced similar issues with droughts and water management. The key is to integrate technology like smart meters and AI-driven distribution systems. India's scale is unprecedented though - 18% of global population with 4% water resources means every drop counts. Hope the private sector steps up responsibly!
I work in the water treatment sector and can confirm - sewage treatment is indeed the biggest opportunity. But where's the political will? Many states still dump untreated sewage into rivers despite court orders. The PL Capital report is right that this is structural and policy-driven. We need strict enforcement of zero liquid discharge norms and faster execution of AMRUT projects. Also, desalination plants along the coast could be game-changers for cities like Chennai and Mumbai!
Impressive numbers but I'm cautiously optimistic. The report mentions "policy-driven" investments but India's track record with infrastructure projects isn't great - delays, cost overruns, corruption. Also, wastewater recycling is excellent but community awareness and behavior change are equally important. We in the West have learned that tech alone can't solve water issues - you need everyone on board from the start. 🙏
P Priyanka N