India’s Businesses Address Growing Water Crisis

India’s water crisis, driven by overuse, pollution, and climate change, threatens economic and social stability. With demand outstripping supply, businesses across sectors are adopting sustainable practices to manage water resources, balancing operational needs with environmental responsibility.

India faces acute water scarcity, with 600 million people under high to extreme water stress. Agriculture, which consumes 80% of the country’s freshwater, industrial activities, and rapid urbanization strain available resources.

Pollution further degrades rivers and groundwater, with 70% of surface water contaminated. Businesses in water-intensive industries like textiles, food processing, and manufacturing are implementing strategies to reduce water use. These include water recycling systems, which treat and reuse wastewater, and rainwater harvesting to capture runoff for industrial use. Some companies invest in watershed restoration projects to replenish groundwater, particularly in rural areas where agriculture depends on aquifers. For example, initiatives in drought-prone regions like Maharashtra and Karnataka focus on building check dams and restoring wetlands to improve water availability. Technology plays a significant role, with IoT-based sensors monitoring water usage in real-time to optimize consumption in factories and offices. 

Large corporations are leading these efforts, but small and medium enterprises (SMEs), which form the backbone of India’s economy, face challenges due to high implementation costs. 

Collaborative models, where larger firms partner with SMEs, help bridge this gap by sharing resources and expertise. Government policies, such as the Jal Shakti Abhiyan, encourage water conservation through incentives and regulations, pushing businesses to adopt sustainable practices. Climate change worsens the crisis, with erratic monsoons and frequent droughts reducing water availability. 

For instance, the 2024 monsoon season saw below-average rainfall in key agricultural states, impacting crop yields and industrial operations. 

Businesses that prioritize water efficiency gain competitive advantages, including lower operational costs and improved community relations. However, scaling these efforts requires significant investment in infrastructure and public awareness. The economic impact of water scarcity is substantial, with estimates suggesting a potential 6% GDP loss by 2050 if current trends continue. Addressing this crisis demands a coordinated approach involving businesses, government, and communities to ensure sustainable water management.

Conclusion

India’s water crisis poses a critical challenge, but businesses are responding with innovative solutions like recycling and watershed restoration. Continued investment, technology adoption, and policy support are essential to secure water resources while supporting economic growth.

Source: Outlook Business