Association (APA) in the United States has introduced water-related policy
guidelines in its charter to promote sustainable development in cities that treats
water as a critical and essential element in infrastructure planning. As a part of the
initiative, APA has also committed to collaborate and work with federal agencies,
organizations and programmes to address present and future water issues, enhance
technical skills of planners to enable them serve as water experts and help advance
legislations that support integrated approach to water management.
11
4 Economic Risks of Water Scarcity
Water is essential for the production of most physical goods (directly) and services
(indirectly). Water scarcity poses a serious threat to sustainable economic activity in
India and can hamper national growth. As the water crisis worsens, production
capacity utilization and new investments in capacity may both decline, threatening
the livelihoods of millions, and commodity prices could rise steeply for consumers
due to production shortages (Veolia). Such circumstances can lead to economic
instability and disrupt growth. Given below are the key risks that lie ahead in
India’s case.
4.1 Risk to Sustainable Industrial Activity
Water shortages in the country may hamper industrial operations and other economic
activity that may lead to muted economic growth. Industrial activity accounts for
*30% of GDP contribution at the national level
12 and holds significant importance
in India’s economy. Estimates suggest that industrial water demand will quadruple
between 2005 and 2030
13 highlighting the significant rise in demand by the sector
over time. Additionally, a recent study reports that industries will need to draw three
times the water compared to their actual consumption by 2030 due to water efficiency
11
“APA Policy Guide on Water”, American Planning Association, accessed May 16, 2019, https://
www.planning.org/policy/guides/adopted/water/.
12
Ministry of Finance, Contribution of Various Sectors to GDP (Press Information Bureau, 2018),
https://pib.nic.in/newsite/PrintRelease.aspx?relid=186413; Central Statistics Office, Key Economic
Indicators (Ministry of Statistics & Programme Implementation, 2019), https://eaindustry.nic.in/
key_economic_indicators/Key_Economic_Indicators.pdf.
13
Charting Our Water Future (McKinsey and WRG 2009), p. 55, https://www.mckinsey.com/*/
media/mckinsey/dotcom/client_service/sustainability/pdfs/charting%20our%20water%20future/
charting_our_water_future_full_report_.ashx.
28
K. Singh and S. Mahanta
guidelines in its charter to promote sustainable development in cities that treats
water as a critical and essential element in infrastructure planning. As a part of the
initiative, APA has also committed to collaborate and work with federal agencies,
organizations and programmes to address present and future water issues, enhance
technical skills of planners to enable them serve as water experts and help advance
legislations that support integrated approach to water management.
11
4 Economic Risks of Water Scarcity
Water is essential for the production of most physical goods (directly) and services
(indirectly). Water scarcity poses a serious threat to sustainable economic activity in
India and can hamper national growth. As the water crisis worsens, production
capacity utilization and new investments in capacity may both decline, threatening
the livelihoods of millions, and commodity prices could rise steeply for consumers
due to production shortages (Veolia). Such circumstances can lead to economic
instability and disrupt growth. Given below are the key risks that lie ahead in
India’s case.
4.1 Risk to Sustainable Industrial Activity
Water shortages in the country may hamper industrial operations and other economic
activity that may lead to muted economic growth. Industrial activity accounts for
*30% of GDP contribution at the national level
12 and holds significant importance
in India’s economy. Estimates suggest that industrial water demand will quadruple
between 2005 and 2030
13 highlighting the significant rise in demand by the sector
over time. Additionally, a recent study reports that industries will need to draw three
times the water compared to their actual consumption by 2030 due to water efficiency
11
“APA Policy Guide on Water”, American Planning Association, accessed May 16, 2019, https://
www.planning.org/policy/guides/adopted/water/.
12
Ministry of Finance, Contribution of Various Sectors to GDP (Press Information Bureau, 2018),
https://pib.nic.in/newsite/PrintRelease.aspx?relid=186413; Central Statistics Office, Key Economic
Indicators (Ministry of Statistics & Programme Implementation, 2019), https://eaindustry.nic.in/
key_economic_indicators/Key_Economic_Indicators.pdf.
13
Charting Our Water Future (McKinsey and WRG 2009), p. 55, https://www.mckinsey.com/*/
media/mckinsey/dotcom/client_service/sustainability/pdfs/charting%20our%20water%20future/
charting_our_water_future_full_report_.ashx.
28
K. Singh and S. Mahanta