Summary
India is the 2nd largest water consumer in the world. The country needs around 740 billion cubic meters of water per year to serve its population. Further, the water demand is expected to surpass supply within the next 20-25 years. This, in turn, is generating strong growth opportunities for the water and wastewater treatment sector. Increasing demand for pure water due to increased awareness about water quality and health is also important for companies to consider. Besides, there is a huge demand for international, innovative water treatment technology in the sector. The investment opportunities in the water sector are forecasted to increase to $130 billion by 2030.
COVID-19 Impact
As India and the rest of the world are battling the dreadful coronavirus, water safety is posing a serious threat. We cannot emphasize enough on the importance of efficient water and wastewater management and treatment. This is especially important for a country like India where over 163 million people don’t have access to clean drinking water. Moreover, only 50% of households are using adequate sanitation facilities. Having said that, water consumption is comparatively high because of the increased awareness of hygiene. More and more people are now considering to wash their hands about 5-7 times a day. Owing to this, water consumption has increased to 1.5 times.
Further, going by the UN World Water Development Report, water sanitation can be a fruitful business at the moment. They suggest a high return on investment in the water and wastewater treatment industry. The cost-benefit ratio is estimated to be 5.5 for improved sanitation and 2.0 for improved drinking water.
The government is now focusing on the safe disposal of water waste along with the effective treatment of pharma residue.
The statistics below are taken from Industry data available pre-Corona virus impact.
Map – Industry Clusters
Growth Drivers
- Due to rising water shortages, the water business in India has turned into a multibillion-dollar industry.
- Each year, government spending on water infrastructure is increasing under various schemes.
- State governments are also hiking investments in setting up more water and wastewater treatment plants.
- There is a healthy demand for setting up desalination plants in India.
- There is an exponentially increasing demand for water due to population growth, agricultural use, environmental degradation, and economic development.
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