India's deepening water crisis

Rising temperatures, groundwater depletion, and weak governance are pushing cities towards acute water shortages.

With summer setting in and temperatures rising, concerns over water scarcity are mounting, particularly in urban areas. Amid the scorching heat, cities such as Hyderabad and Bengaluru are already witnessing rapidly plummeting groundwater levels, pushing the governments to explore alternative sources to meet the growing demand for Water, Sanitation, and Hygiene (WASH) services. Every year, as demand for water outstrips supply, governments and stakeholders resort to short-term, unsustainable and inefficient measures, further straining already stressed water resources.

India is among the countries most susceptible to water crises. According to water assessments by the Water Resource Institute (WRI) and NITI Aayog, India ranks 13th out of 17 in terms of water stress and 120th out of 122 for water quality. Over the past decade, major cities – including Delhi, Mumbai, Hyderabad, Bengaluru and Chennai – have faced recurrent water shortages. Climate change is exacerbating the crisis, increasing the frequency and risk of drought. Since 1875, India has experienced six major drought periods. While it is too early to declare 2025 a drought year, states like Karnataka, Tamil Nadu, and Maharashtra were severely affected by drought in 2024 due to El Niño.

Despite La Niña setting in, this year is likely to bring a normal
monsoon alongside rising temperatures.

While climate change is altering the hydrological cycle, India’s water crisis is primarily driven by a fragmented, supply-driven approach, resulting in mismanagement and overexploitation of scarce resources. India is at the brink of an impending water crisis in an increasingly warmer world, compounded by increased climate variability and inefficient water governance. However, this also means that there is a possibility to revive the situation with collective and decisive actions by the government and other stakeholders.

Water is essential for life. Civilisations, communities, and economies have developed and continue to thrive on access to reliable freshwater resources. Water use has multiple benefits and values across agriculture, industry, and domestic sectors. It is also vital for the maintenance and provision of various ecosystem needs and services. However, since the Industrial Revolution, economic growth and development have assumed primacy, changing our relationship with the environment and leading to unsustainable over-extraction of water resources. Failing to understand and acknowledge that a constant pursuit of economic prosperity is counterproductive has fuelled a flawed perception that water is an infinite, free public good – an outdated perception that hinders the adoption of sustainable water management practices.

Drivers of the crisis

With about 18% of the world’s population but only 4% of global freshwater resources, India faces increasing water insecurity. As climate change and water stress intensify, sectoral and transboundary water-related conflicts are expected to escalate, triggering large-scale migration and displacement. Groundwater, a critical resource for WASH and agriculture, is under severe threat. Rampant urbanisation and inefficient agriculture practices have pushed many groundwater blocks across the country into ‘critical’ and ‘semi-critical’ categories, threatening future drinking water and food supplies.

Rapid urbanisation, population growth, poor urban planning, changing lifestyle and dietary habits, and inefficient water governance are placing immense pressure on limited water reserves. The demand for water is steadily increasing while the per capita water availability is declining at a faster rate. Without concrete demand-side management strategies and large-scale supply augmentation, the demand-supply gap could widen and reach 40% by 2030. This could have severe economic repercussions, with the water crisis potentially costing up to 6% of gross domestic product. The crisis will also disproportionately affect different sections of society, with the poor and farmers bearing a significant burden.

The water crisis is a complex, multi-dimensional problem with conflicting interests among various stakeholders. There is no one-size-fits-all solution, but an Integrated Water Resources Management (IWRM) approach – emphasising efficiency, equity, and sustainability – is urgently needed to safeguard India’s critical water resources. India has managed its water resources effectively in the past based on nature-based solutions, but as cities expand, freshwater resources are subjected to encroachments leading to serious ramifications on urban water security. The future of water security depends on how well the government implements and enforces the principles of IWRM into practical use.
The biggest challenges to sustainable water management are lack of awareness, incentives, and political will. This World Water Day, we must pledge to treat our water resources with respect and efficiency, ensuring that future generations inherit a system that provides reliable and affordable water supply.

(The writer is an assistant professor of economics at the School of Economics and Public Policy, RV University)