Dr. Arvind Kumar*
Water is essential to almost every facet of human life, with its global economic value estimated at $58 trillion. Despite this significance, there are substantial funding gaps in water infrastructure and innovations. Experts note that the water sector receives less than 1% of all climate-tech investments. Businesses and livelihoods depend heavily on the water sector, and the risks associated with water availability and quality for industries could amount to $439 billion. There are also issues of low budget allocations, significant inefficiencies, financial losses, and stark disparities in this sector. Government should give top priority to a considerable increase in budgetary allocations for advancing water infrastructure development. This strategic investment must focus on the integration of new technologies into the water supply system, aiming to substantially reduce water loss. It should include the establishment of efficient wastewater treatment facilities in all cities and towns, promoting full reuse of treated water. Currently, only about 40 percent of sewage is treated, and many cities lack adequate sewerage networks and water supply. India still has a long way to go in enhancing its water infrastructure.The market is expected to grow by 12-15 percent over the next 4-5 years and investments of around Rs 50,000-60,000 crore in the space through government schemes over the next three years is expected. Many companies and sectors will benefit, including those involved in pipe structures, structural tube pipes, and large and small diameter pipes as well as water treatment companies.
Through the allocation of funds to enhance water infrastructure, the government can effectively tackle critical issues associated with water scarcity, support water resilience, and ensure the responsible management of this indispensable resource. Water accounts for approximately 17-18% of the country’s GDP. A robust financial commitment to water-related projects will not only fortify water conservation initiatives but also make substantial contributions to environmental protection and the well-being of citizens. It will play a pivotal role in maintaining the momentum of economic progress, propelling the nation closer to the goal of securing the third position in global economic power.
Environment and Water in 2024-2025 Economic Survey
The Economic Survey of India, 2024-25, firmly dwells on global concerns related to climate change and carries the message of sustainable development through much emphasis on environmental sustainability and water management. With the NAPCC initiatives, India has been quite proactive in policy-making on missions related to solar energy, energy efficiency, and sustainable agriculture. It has also cited the increasing installed capacity of solar and wind energy as progress toward the achievement of 450 GW of renewable energy capacity by the year 2030. Other initiatives taken for protection against the loss of biodiversity are afforestation programs and habitat preservation. An increase in forest cover, along with enhanced carbon sequestration, is also noted. It has ensured the preservation of the Himalayan ecosystem and adjustment of environmental policy according to UN Sustainable Development Goals: more precisely, SDG 13: Climate Action and SDG 15: Life on Land. It has also given a synoptic view of achievements and challenges in reaching them.
It also lays due emphasis on the fact that the management of water resources should be integrated to solve problems relating to water shortage and contamination. Priorities include the execution of schemes for river basin management and rejuvenation of main rivers. Steps taken to augment the efficient use of water in agriculture by micro-irrigation and other means are also surveyed. Another area covered is the increasing water-saving practices among farmers. The survey provides an overview of all initiatives taken towards infrastructure improvement for urban water supply and sanitation, thereby essentially being an increase in piped water supply to urban households through separate proposals and implementation of wastewater treatment projects. It highlights the achievements of the Swachh Bharat Mission in terms of increasing sanitation coverage and reducing open defecation besides continuous efforts to sustain the gains. As such, recognizing the critical role played by the country’s groundwater in its water supply, the survey provides measures to manage and regulate extraction of this groundwater source; and encourages rainwater harvesting and artificial recharge techniques. On the other hand, it talks about management-related issues on community participation, very important, and data-driven decision-making for management. The 2024-25 Economic Survey of India demonstrates a holistic approach to environmental sustainability and water management toward building resilience to an all-inclusive sustainable future wherein climate action, biodiversity conservation, and water-use efficiency go hand in hand.
Environment and Water in the 2024-2025 Budget
The Budget of India for 2024-2025 has brought such issues as environmental sustainability and water management to the front row; this goes on to testify that the government is committed to fighting climate change and paving a course for sustainable development. This involves huge financial outlay toward renewable energy projects, mainly furthering solar and wind energy capacities. These have been taken together in its ambitious targets of 450 GWs of renewable energy by 2030. Inbuilt are provisions for the program of NAPCC that encapsulate missions on solar energy, energy efficiency, and sustainable agriculture. Money has been allocated to programmes like afforestation and for the protection of vital habitats. The budget took notice of the increase of forest cover and augmenting carbon sequestration. Therefore, it places more emphasis on the conservation of the Himalayan ecosystem, with money kept apart, especially to protect this sensitive region from the ravages of climate change. It also makes provisions for projects aimed at pollution control that reduce air and water pollution. Investments in cleaner technologies, in the stricter enforcement of environment-related regulations, are also included. In particular, high funding for waste management activities in towns and urban centers must be provided for proper waste collection, segregation, and recycling.
Such strategies of integrated management of water resources would help in addressing issues like inadequate water and water pollution. The budget has funds for the development of plans on the management of river basins and the restoration of some key rivers. It provides for investing in improving water use efficiency in agriculture, such as adopting micro-irrigation systems or other innovative technologies. Besides, this budget also requires farmers to save water. The Department of Drinking Water and Sanitation has been provided with ₹77,390.68 crores for the fiscal year 2024-25 to enhance urban water supply and sanitation infrastructure, including augmentation of piped water supply to all urban households and implementation of wastewater treatment projects. Funds for the Swachh Bharat Mission remain committed to enhancing sanitation coverage and ending open defecation. It therefore recognizes the centrality of groundwater, emphasizing regulation and management of extraction, and encouraging rainwater harvesting, and artificial recharge techniques. Lastly, it propagates community participation in management over groundwater and data-driven decision-making to ensure sustainability in its utilization.
Way Forward
The budget indicated 9 priority areas — water resources being one of them. Under Urban development priorities, promotion of water supply and sanitation and sewage in 100 urban cities including use of treated sewage for irrigation were included. It is a remarkable initiative as saving water use in the irrigation sector is extremely essential by using treated waste water from the municipal sector. Under Infrastructure investment by the central government priority area, irrigation and flood management were included especially in Assam, Himachal Pradesh, Uttarakhand, Sikkim where the effects of global warming and climate change are being noticed in recent times. Data and statistics are a weak area in the water sector. Under priority 9, the budget indicates using sectoral bases on this subject. This is a good initiative.
Overall, the budget has taken certain initiatives in improving water resources management, although these should have included other areas as water scarcity is coming in future years and as per NITI Aayog 2019 Report, water demand in various sectors is expected to be twice the water resources supply. This calls for water savings and use of technology for atmospheric water generation. Incentives for these initiatives have not been included in the budget. In urban landscapes the cities require continued focus on improving water supply, sanitation and solid waste management and it is critical to look at optimizing water supply to avoid water shortage in peak summer season. This has to be done by better demand management, graded water use and reusing treated sewage for non-potable water use. It is also required to ensure maximum resource recovery from waste to create zero-waste societies and decouple waste generation from economic growth. The Budget of 2024-25 is a concoction of integrated programs toward the attainment of sustainable environmental amenities and efficient management of water resources in India. The country tends to create resilience as well as sustainability with its mechanisms of built-in programs on matters concerning climate change, biodiversity conservation, and efficient use of its water resources.
*Editor, Focus Global Reporter
