The water paradox in India: Managing abundance amid growing scarcity

Souryabrata Mohapatra, Amit Mitra and Sanjib Pohit
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Amit Mitra: National Council of Applied Economic Research
Sanjib Pohit: National Council of Applied Economic Research

No 182, NCAER Working Papers from National Council of Applied Economic Research

Abstract: India is facing a looming water crisis driven by rapid urbanisation, population growth, groundwater depletion, and climate variability. Despite receiving over 3,800 billion cubic metres of annual precipitation, the country utilises less than one-third effectively due to uneven rainfall distribution, inadequate storage infrastructure, and poor water governance. Per capita water availability has declined sharply, while demand is projected to double by 2030. Agriculture remains the dominant water consumer, though industrial and domestic demands are rising rapidly. Groundwater over-extraction—particularly in states like Punjab, Rajasthan, and Delhi—has led to critical depletion, with 22% of groundwater blocks categorised as overexploited. Climate change further exacerbates water stress through erratic monsoons, glacial retreats, and increasing droughts and floods. This paper assesses systemic challenges across the water sector in India, from source sustainability to end-use efficiency. It also highlights policy evolution, institutional bottlenecks, and emerging governance initiatives. The study emphasises the urgent need for integrated water resource management, investment in wastewater recycling, demand-side interventions, and climate-resilient infrastructure to ensure water security. A multi-pronged strategy is essential for safeguarding livelihoods, supporting economic development, and achieving long-term sustainability.

Keywords: Water scarcity; Groundwater depletion; Climate change; Urbanisation; Water governance and management; India (search for similar items in EconPapers)
JEL-codes: O21 Q25 Q53 R11 (search for similar items in EconPapers)
Pages: 52 pages
Date: 2025-04-03
New Economics Papers: this item is included in nep-mac
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