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The water paradox in India: Managing abundance amid growing scarcity

Author

Listed:
  • Souryabrata Mohapatra

    (Indian Institute of Technology, Jodhpur)

  • Amit Mitra

    (National Council of Applied Economic Research)

  • Sanjib Pohit

    (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.

Suggested Citation

  • Souryabrata Mohapatra & Amit Mitra & Sanjib Pohit, 2025. "The water paradox in India: Managing abundance amid growing scarcity," NCAER Working Papers 182, National Council of Applied Economic Research.
  • Handle: RePEc:nca:ncaerw:182
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    Keywords

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    JEL classification:

    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy
    • Q25 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Water
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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