How to solve the water crisis

The water crisis in India reached a breaking point last year when Bengaluru, the country’s third-largest city, faced its worst water shortage in history. The crisis spread beyond the city, affecting the entire state of Karnataka. Over 7,000 villages were impacted, and residents, businesses, and farmers alike struggled as access to clean water dwindled. Those who could afford it turned to expensive private water tankers, while farmers suffered devastating losses due to the lack of irrigation water.

Although the severity of the crisis has subsided, the threat of recurrence remains high—not just in Bengaluru but in other rapidly growing cities across India. The combination of industrialisation, urban expansion, and poor water management has made water scarcity a looming danger for millions.

Bengaluru is not alone in this struggle. According to NITI Aayog, over 600 million Indians face high to extreme water stress. Globally, more than two billion people lack access to clean drinking water. The World Resources Institute warns that by 2030, the world will face a 56% freshwater shortfall.

Water is the backbone of economic and environmental stability, supporting agriculture, industry, energy, and everyday human consumption. However, widespread inefficiencies—particularly in agriculture, which consumes about 70% of water resources—are worsening the crisis. Industrial and household waste further pollute already scarce water supplies, making solutions more urgent than ever.

India’s groundwater, the primary drinking water source for most of the population, is in dire condition. A shocking 70% is unfit for consumption1. Waterborne diseases, particularly among children under five, are rampant due to contamination from untreated sewage, industrial discharge, and agricultural runoff laden with pesticides and chemicals.

Another alarming factor is natural contamination. Around 20% of India’s landmass has groundwater with toxic levels of arsenic, threatening over 250 million people, particularly in the Ganges River basin2. The continued use of shallow wells—cheaper but highly vulnerable to arsenic contamination—exposes millions to this deadly toxin.

Current water management strategies focus almost exclusively on “blue water”—rivers, lakes, and underground aquifers—while largely ignoring “green water,” which exists in soil moisture and vegetation. Green water plays a crucial role in replenishing freshwater supplies and sustaining ecosystems, yet it remains underutilised in water conservation efforts. A holistic approach, integrating both blue and green water, is essential for long-term water security.

The destruction of forests and wetlands—key natural water regulators—has made India even more vulnerable to extreme weather. Over the last 30 years, nearly 40% of India’s wetlands have vanished due to urbanisation and pollution. Meanwhile, India’s deforestation rate remains among the highest globally.

In 2024 alone, India faced both severe droughts and catastrophic floods, affecting millions. Rising temperatures and erratic weather patterns intensify the water crisis, forcing countless people, especially the poor, to abandon their homes and livelihoods. Climate change and water scarcity are two sides of the same coin; tackling them separately is not an option.

Solving the water crisis and achieving climate goals will require substantial investment—India alone may need hundreds of billions, if not a trillion dollars, annually to implement sustainable solutions. Globally, the figure is over USD 10 trillion each year until 2030, rising to USD 12 trillion after that3. The financing needs are staggering, but not impossible. Global institutional investors manage approximately $200 trillion in assets4.

Historically, governments and international aid agencies have shouldered most of the financial burden. However, with developed nations cutting foreign aid budgets, the private sector must step up. Public-private partnerships (PPPs) could play a crucial role in securing the necessary funding, but past attempts have been marred by poor contract design, lack of transparency, and an overreliance on multinational corporations with little local engagement.

A successful PPP model must prioritise local businesses and entrepreneurs who understand community needs. Small and medium-sized enterprises (SMEs) in the water sector—providing services such as wastewater treatment and irrigation solutions—must have better access to financing. Encouraging private investment through risk-mitigated business models will unlock much-needed capital.

Mixed-financing PPP projects, i.e., a variable mix of government and private sources, should be the immediate strategy. In mixed-financing PPPs, innovative financial strategies at different stages of a project life-cycle as projects progress from conception to operation, can dramatically amplify public sector funds. Indeed, it is possible for public sector funding to be less than 1% of the project cost, ie, a few billion dollars of public sector funding can mobilise several hundreds of billions, or even trillions of dollars of private capital. Additionally, innovative structuring can significantly lower capital costs, helping ensure affordable water services for all.

Just as the IMF and World Bank were created after World War II to address global economic challenges, a dedicated institution—the Global Center for Water (“The Center”)—must be established to tackle the existential threat of water scarcity.

The Center’s key objectives would be three-pronged:

1. Develop data-driven policies and effective PPP models tailored to regional needs.
2. Foster a global movement that unites stakeholders, from local communities to multinational corporations, under a shared vision for water security.
3. Mobilise private capital by collaborating with international financial institutions, governments, and donors to fund innovative water projects.

India, with its extensive institutional network—including NITI Aayog and the IITs—has the potential to become a global leader in water sustainability. By spearheading solutions to its own water crisis, India can provide a model for other nations struggling with similar challenges.

The water crisis is no longer a distant threat; it is here, and its consequences are devastating. Without immediate action, water scarcity will disrupt economies, deepen inequalities, and displace millions. The solutions exist, but they require coordinated global efforts, bold policy reforms, and significant financial investments.

The money, expertise, and technology are all available. What’s needed is the will to act—before it’s too late.

Reference/s:

1. NITI Aayog Report (2018)
2. https://www.iitkgpfoundation.org/article.html?aid=1228&nl=
3. World Economic Forum (Financing the Transition to a Net-Zero Future), McKinsey (Solving the net-zero equation)
4. OECD Institutional Investors Statistics: https://www.oecd.org/

Author:

Saud Siddique

Tigris Water Company

saud.siddique@tigriswater.com

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