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Water is a precious, but finite resource, necessary to life, without an adequate substitute. India is home to 18% of the world’s population but has only 4% of the World’s water resources. (World Bank report, 2016). Water and economics are inextricably linked. Population growth, agriculture, industrialization, urbanization, and economic development are all greatly dependent on water resources. Water is necessary for our life since it nourishes all living things and aids in the growth of food. Seventy-five percent of the Earth's surface is made up of water, but only 1.2 percent can be used as drinking water. ( National Geographic Report). Population growth, Human activity, and development processes are putting great pressure on already depleted water resources, through increasing water demand and pollution. The world's population has doubled in the previous century, while water consumption has climbed fivefold.

For the socioeconomic advancement of any civilisation, water is a fundamental natural resource. As the world population increased from 3.8 to 5.4 billion during the last two decades, water use increased world wide three fold (Postel 1992)

According to research, there is a significant rise in the demand for water as a result of population growth, urbanisation, and industrialization, as well as the need to increase agricultural output. Water is in short supply compared to the nation's rising demand for it. Water availability on a per-person basis is likewise steadily declining. India faces an increasingly difficult task in terms of sustainable growth and effective water management. More than 2.2 million people are thought to pass away each year from diseases brought on by tainted water and inadequate sanitation. (Tariq Ahmad Bhat, 2014).

Water scarcity, made worse by climate change, may impede economic growth, encourage migration, and lead to violence.. However, by adopting steps to allocate and use water resources more effectively, the majority of nations can offset the negative effects of water scarcity. (World Bank Report)

The annual economic gains from prevented deaths alone would amount to $18.5 billion with universal access to basic water and sanitation. Because of increased production, lower health care expenses, and fewer preventable deaths, every dollar spent on water and sanitation yields a $4 return on investment. (water.org)

This paper primarily focuses on theoretical research concerning the impact of water on economic growth and how it affects the GDP of the country. The information for this study, the report was gathered from secondary sources such as published publications, articles, books, government publications, and personal communications.

1.0 The economic value of water and its uses in different sectors
Water is not a commodity, but a resource - precious and scarce. Water is a free gift from nature with no well-defined property rights, hence it has a subjective value varying with geographies, demographics, and individual circumstances  Rainwater, River water, Groundwater, Canal water, Surface water, Dam water, Reservoir water, and Springwater are the various types of this resource.
Agriculture consumes the largest share of world freshwater resources (69 percent). Population growth between 2012 to 2050 is expected to increase the demand for water for food and agriculture by 50%. There would be an ecological imbalance and a sustainability dilemma as a result of this.(Kornfeld, I E, 2012) When valuing water for food production, it is important to evaluate not just the direct economic benefits of water, but also the economic, sociocultural, and environmental benefits that are often overlooked. Water has a high value in terms of food security, although it is rarely evaluated.
Together, industry and energy use 19 percent of the world's freshwater. (R Hannah &R Max, 2018). The energy and industrial business sectors are highly focused on monetization due to their nature. This results in a preference for certain characteristics of value while ignoring others. It is crucial to note,  that water's overall economic productivity in the energy, industry and business sectors results in a variety of co-benefits, including job creation, product value per unit of water, and product value-added.
Inefficient water usage, excessive pollution discharges, and deteriorated marine and freshwater systems have all resulted in significant levels of water stress due to insufficient water valuation for energy generation, industrial and agricultural activities, and home needs.
Without water, no part of the world can survive. Future economic progress will be hampered by water scarcity. Water technology advancements that reduce water consumption can boost GDP growth. Potable water and a country's GDP can be inextricably linked. GDP has traditionally been regarded as one of the most accurate indicators of a country's economy and growth. (R.Laus, 2021) Thirty percent of India is in the extreme water shortage zone, with less than 500 cubic meters of renewable freshwater per person per year. Furthermore, half of the country's groundwater supplies are not "totally safe. Groundwater has high levels of fluoride in 276 districts, 387 districts have nitrate over the acceptable threshold, and 87 districts have arsenic. as per the Central Ground Water Board report.
India is blessed with abundant rainfall that is evenly spread five-six months in the year. The country's average annual rainfall is 1170 mm, ranging from 100 mm in Rajasthan's desert parts to 10000 mm in Meghalaya's  ( pib.gov.in) The country's total sweet water supply is 4000 billion m3 per year. Over 1047 billion m3 of water is lost due to evaporation, transpiration, and runoff, reducing accessible water to 1953 billion m3 and useable water to 1123 billion m3. (Akshit 2020)  Only 18 percent of rainwater is efficiently used, while 48 percent enters the river, with the majority of it ending up in the ocean. (Hegde NG, 2012) Following is the usage of water in different sectors.
1.1. Water and Irrigation (Agriculture)
Despite fair rainfall distribution, the country is unable to make effective use of rainwater due to a lack of awareness and inadequate infrastructure for dam and reservoir construction. As a result, only 35-40% of the cropping area receives irrigation, allowing for just 1-2 crops per year. Only 140 m ha of the total cultivable land of 182 m ha is under net cultivation, with 62 m ha under irrigation. There is still room to expand irrigation to 140 hectares, 76 hectares with surface water, and 64 hectares with groundwater. Irrigation potentials have already been built for 107 million hectares, but they are not being used adequately. (Annual Report, Department of Agriculture, Cooperation & Farmer s welfare, GOI pp 298, 2021)
Although the Government of India is predicted to cover 104 million ha by 2025, the effective area under irrigation is estimated to be 76 million ha. The primary source of irrigation will remain groundwater. By 2025, 60 million hectares will be irrigated with groundwater, with 70 million hectares under groundwater by 2050. Canal irrigation covered 17 million hectares in 2000, and by 2050, it will cover 27 million hectares. By connecting the rivers and harvesting 36 billion m3 through artificial recharging of groundwater, the potential can be increased by 35 million acres. ( GOI report, 2009)
1.2 Industrial Sector - Water shortages in the country can stifle industrial activities and other economic activity, resulting in sluggish growth. At the national level, industrial activity contributes 23% of GDP and is vital to India's economy. Between 2005 and 2030, the demand for industrial water is expected to quadruple. (Sector-Wise GDP of India 2021).
1.3.  Energy Sector- By 2030, 70% of India's thermal power plants are expected to be underwater stress, significantly limiting the country's energy production and economic activities. Around 40% of India's thermal power facilities are located in water-scarce areas and are already experiencing operating difficulties. (Tianyi Luo 2018).
2.0 Scarcity of water resources and vulnerability in India
Fresh water in India is rapidly disappearing as demand for economic activity rises. With rising demand and depletion of accessible water, ensuring a reliable supply of high-quality water is becoming increasingly important. Population increase is skewed across continents, resulting in a large gap between the current population and water availability. Asia has 36 percent of the world's accessible freshwater reserves, with almost 60 percent of the world's people living in areas where water is scarce. (UN World Water Development Report 2021).Only 1% of the world's water is suitable for drinking. Agriculture, industrial production, and home consumption are all common uses of the available water. Fisheries, hydropower generation, transportation, and sustaining biodiversity and ecological balance all require water. From developing to developed countries, the amount of water used for agriculture and industries differs. Developed countries use less water for agriculture and more for industrial and domestic needs.
Developing countries such as India and Africa, on the other hand, use 80-90 percent of their water for agriculture and just 5-12 percent for industrial use. This is due to improper water use in agriculture and low industrial development investments. Water demand is expected to rise in the future due to urbanization and industrial expansion. It should also be highlighted that by 2050, India's per capita water demand will have increased from 99 liters per day to 167 liters per day.  (Ahmad Tariq and Tariq Bhatt,  2019) 
3.1 Desertification
Desertification and land degradation affect 30% of Indian land, and this outcome is directly linked to inadequate water management. Water erosion, or the loss of soil cover owing to rainfall and surface run-off, is the leading cause of desertification in India, accounting for 11 percent of the total.
In the future, severe water shortages are predicted to occur in urban areas. According to estimates, the domestic demand-supply gap will reach 50 BCM in 2030, with demand predicted to treble by that time. Poor water supply puts 8 million children under the age of 14 in urban India in danger.
3.2  Cropping Pattern in India
A detailed examination of cropping patterns in Indian states reveals a worrisome inefficiency and poor planning that is generating the majority of water-related issues, including rapid depletion of groundwater levels.
3.3. Socioeconomic Vulnerability of water and its management
The concept of ‘vulnerability’ has been in wide use in water resources or environmental sectors in the last few years. It basically refers to the inability of a system to withstand a hazardous condition. Water management in irrigation, wastewater treatment, desalination, and water pricing are all important aspects of water that must be handled immediately.
3.4.  Desalination of seawater is gaining popularity as a potential solution to the worldwide water dilemma. India can also benefit from it. Desalination of seawater is becoming a more important solution for solving severe water shortages around the world. There are about 1000 membrane-based desalination plants in India, according to the Desalination Association of India, with capacities ranging from 20 m3/day to 10,000 m3/day. Desalination plants have previously been built in the vicinity of Chennai, Puducherry, Andhra Pradesh, Gujarat, and other cities. Desalinated water contains fewer than 500 mg/lit of dissolved solids, making it appropriate for most household, industrial, and agricultural applications. Israel currently gets 55 percent of its domestic water through desalination, helping to transform one of the world's driest countries into a water superpower ( Rowan Jacobsen, 2016).
3.5. Irrigation water pricing-  Law of economics is anything scarce and in high demand commands a price. Effective water pricing brings an appropriate incentive to ensure not only that there is enough clean water for all stakeholders who demand it but also secures financial sustainability for urban water services providers.  Water pricing is the best instrument to manage water demands and control financial losses. Low water rates result in low revenue collections and contribute to the growing cost of government subsidies, in addition to incentivizing inefficient water use. The notion of water pricing is laid forth in the National Water Framework Bill (2016). It states that water used for commercial agriculture and industry should be priced on a full economic basis, while water used for household purposes should be paid using a graded pricing scheme. Fourteen states have attempted but failed, to establish water regulators. Only Maharashtra acknowledged universal access to water and fair pricing. Its mandate, however, only applies to irrigation water. Despite enacting laws in 2008, Uttar Pradesh has struggled to properly implement its water regulator.
3.6  Wastewater treatment
 New Delhi in India, alone can generate 720 million tonnes of sewage every day, of which only half is processed and the remainder is dumped directly into the Yamuna river. Other cities are experiencing similar issues. Only 31% of sewage water generated in 23 major cities is cleaned, leaving the rest to pollute the country's 18 major rivers. Fluorides, nitrites, and several hazardous metals have been found in most of the country's rivers. Fluorosis affects around 66 million people worldwide. Pollution of drinking water sources is also caused by poor sanitation in both rural and urban regions.  Only 30% of the rural population has access to toilet facilities, whereas 65 percent of urban residents do. Human excrement contains nitrates and dangerous microorganisms, which trickle down to contaminate water tanks and open wells.

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