For a pail of water, Jack fell down and broke his crown. In India though, there’s no need to break a crown or see Jill come tumbling after. In fact, a report projects the lack of water in India and the surging demand to unleash a big investment opportunity.
India's worsening water scarcity is opening up a significant long-term investment opportunity across the water and wastewater infrastructure ecosystem, according to PL Capital's latest thematic report, Water Megatrend 2.0: Positioning for the Next Wave of Water-Led Investments. The report warns that India's water demand could be twice the available supply by 2030, creating an enormous infrastructure challenge. Bridging that gap may require investments of more than ₹20 lakh crore over the next decade.
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India's water crisis could unlock a ₹20 lakh crore investment opportunity
"Water is becoming increasingly important as one of the top strategic resources in India. In contrast to other infrastructure-related trends, which may be associated with economic cycles, the investments in water security are structural, policy-driven, and mandatory for sustainable development," Vikram Kasat, Chief Business Officer-Advisory at PL Capital, said.
Kasat said water is emerging as one of India's most critical strategic resources, with rapid urbanisation, industrial expansion and tighter environmental standards set to drive sustained demand for water infrastructure. He said the country is entering a prolonged investment cycle covering water purification, wastewater treatment, recycling, reclamation, desalination and water reuse facilities. In his view, the sector is moving into a phase of faster capital spending, creating a long runway for companies operating across the water value chain.
The backdrop is becoming increasingly difficult to ignore. India accounts for nearly 18% of the world's population but has access to only around 4% of global freshwater resources, leaving the country with a structural water deficit that demands sustained investment across the entire water ecosystem. Unlike many infrastructure themes that rise and fall with economic activity, water security has become a long-term national priority.
