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Council on Energy, Environment and Water Integrated | International | Independent
BOOK
Water, Nature, Progress: Solutions for a New India
Parameswaran Iyer, Arunabha Ghosh, and Richard Damania

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Executive Summary

India faces an unprecedented water crisis, driven by climate variability, inefficient agricultural practices, and rapid urbanisation, with per capita water availability steadily declining. Rather than looking at water merely from an environmental or engineering perspective, Water, Nature, Progress: Solutions for a New India frames it as a critical macroeconomic variable that will determine India’s trajectory toward becoming a developed nation by 2047. While access to water has improved through initiatives such as the Jal Jeevan Mission and AMRUT, systemic inefficiencies and fragmented governance across the agricultural, industrial, and urban sectors remain severe constraints on economic growth.

The book advocates for a paradigm shift from traditional "blue water" extraction to the sustainable co-management of land and water ecosystems. It emphasises unlocking the hidden reservoir of "green water", projects used water in India from a pollution liability to a multi-billion-dollar wealth-generation opportunity through the reuse of treated used water, and advocates for addressing the critical water and sanitation gaps in peri-urban areas, often ignored as the administrative "missing middle". To achieve these, it suggests governance reforms, behaviour change promotion, and pricing reforms.

Key findings

  • Growing water stress and climate risks: Declining per capita water availability, increasing frequency of floods and droughts, and shifting precipitation patterns are intensifying water insecurity across regions.
  • Inefficiencies in water use: Agriculture accounts for the majority of water consumption, yet water productivity remains low due to unsustainable cropping patterns and inefficient irrigation practices.
  • Untapped potential of used water: Urban India generates significant volumes of used water, but limited treatment and reuse result in lost economic and environmental opportunities.
  • Fragmented governance: Multiple institutions with overlapping responsibilities lead to weak coordination, inadequate monitoring, and inefficient resource allocation. 
  • Underutilisation of demand-side solutions: Policies have historically focused on supply-side infrastructure, while behavioural change and efficiency improvements remain underemphasised. 

Key recommendations

  • Adopt a green water mission: Shift focus from blue water extraction to managing "green water". Scale regenerative farming, protect upstream natural forests, renew Soil Health Card scheme and reform MSP policies to incentivize climate-resilient crops like millets over water-intensive rice.
  • Enable a circular water economy and ‘sponge cities’: Target 100 per cent used water treatment by 2035 to generate wealth from waste. Redesign urban landscapes into "sponge cities" using blue-green infrastructure for flood management and water recharge, and leverage new public-private partnerships to scale the reuse of Treated Used Water (TUW).
  • Prioritise peri-urban WASH system: Launch a dedicated Swachh Bharat Mission (SBM) 3.0 to address service gaps in expanding transitional areas. The mission would focus on tailored governance reforms, community experiments, financial guarantees to ensure proper treatment, and disposal of faecal sludge and technological innovations for decentralized water treatment.
  • Strengthen water governance to dismantle administrative silos governing land and water resources, promote behavioural change for scaling up reuse and precision agriculture for freshwater savings, and  reform water financing and pricing, shifting the mindset from a "willingness to pay" to a "willingness to charge" through rational, volumetric tariffs that ensure full cost recovery. 

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FAQs

Frequently Asked Questions

  • Why is a shift from supply-side to demand-side water management necessary?

    Supply-side solutions such as dams and storage infrastructure are capital-intensive, have a long gestation period, and often have limits to meet rising demand. Demand-side approaches-such as improving efficiency, reuse, and behaviour change offer more sustainable, and cost-effective solutions.

  • What is the Green Water Mission and why is it important?

    The Green Water Mission focuses on improving soil moisture and leveraging rainfall stored in soils (green water). Since a large share of water is held as soil moisture, improving its management can enhance agricultural productivity, reduce irrigation demand, and build climate resilience.

  • How can a circular water economy benefit India?

    A circular water economy promotes treatment and reuse of used water, reducing dependence on freshwater sources. It can generate significant economic value, create jobs, and improve environmental outcomes while addressing urban water shortages.

  • Why are peri-urban areas a priority for WASH interventions?

    Peri-urban areas often fall between rural and urban governance systems, leading to gaps in water and sanitation services. Targeted interventions can address these gaps through decentralised and community-managed solutions.

  • What are the key governance challenges in India’s water sector?

    Water governance is fragmented across multiple ministries and levels of government, leading to coordination issues, low accountability, and inefficient management. Strengthening institutions and improving data systems are critical.

  • How can behavioural change improve water management?

    Behavioural interventions, such as awareness campaigns, incentives, and social norms, can significantly improve water use efficiency in households, agriculture, and sanitation without requiring large investments.

  • Why is water pricing reform important?

    Appropriate pricing reflects the true value of water, encourages conservation, ensures the financial sustainability of utilities, and allows targeted subsidies for vulnerable populations.

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