The Economics of Water in India
Where India's Water Goes
How India's water is used across agriculture, homes and industry, why farming dominates, and what that means for policy.
India has about 18 percent of the world’s population but only around 4 percent of its freshwater resources.
Use by sector
- Agriculture: around 80 percent or more of water use.
- Domestic use: a smaller share.
- Industry and energy: the rest.
Why farming uses so much
- Irrigation for thirsty crops like rice and sugarcane.
- Flood irrigation that wastes water.
- Free or cheap power for pumps.
Per capita decline
As population grows, water available per person has fallen. India is approaching the level experts call water-stressed.
Implications
- Small savings in agriculture free up large amounts for cities and industry.
- Crop choices matter: growing rice in dry regions like Punjab uses huge amounts of groundwater.
Seasonal problem
Most rain falls in the monsoon months. Storing and managing that water through the year is a key challenge.
The rice cost
Growing one kilogram of rice can require thousands of litres of water. In Punjab, much of this comes from depleting aquifers.
Thinking cities use most of India's water
Agriculture uses around 80 percent or more.
Key takeaways
- India has 18 percent of world population but about 4 percent of freshwater.
- Agriculture uses around 80 percent of water.
- Thirsty crops and flood irrigation drive use.
- Small farm savings free large amounts for other uses.
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