The Economics of Water in India: Checkpoint 1

Quick checkpoint - five questions on water pricing, water use, city supply, tariffs and tankers.

Question 1 of 5 How does marginal value explain the diamond-water paradox?

Plentiful water makes each extra litre cheap Water is rarer than diamonds Diamonds are essential Prices are random

Scarcity drives marginal value.

Question 2 of 5 Roughly what share of India's water is used by agriculture?

10 percent 30 percent Around 80 percent 100 percent

Irrigation dominates water use.

Question 3 of 5 What is non-revenue water?

Water produced but not billed Rainwater Bottled water Seawater

Leaks, theft and faulty meters cause it.

Question 4 of 5 Which city provided drink-from-tap water from 2021?

Puri Shimla Leh Gangtok

Puri in Odisha became a notable example.

Question 5 of 5 Why do tanker prices spike in summer?

Scarcity and high demand Government orders Tankers get bigger Water becomes cleaner

Demand rises as supply falls.

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