Thursday, April 12, 2012

India’s Water Waste Could Hurt Growth


Indian policymakers warned that the country’s water problems could hamper economic growth unless consumption is regulated.

Prime Minister Manmohan Singh on Tuesday said that managing the country’s water resources “in a rational and sustainable manner” is one of the “critical challenges” of India’s next five-year plan, the country’s blueprint for economic growth. He was speaking in New 

Delhi at the opening session of India Water Week, a conference on water issues.


Noting that “India has a scarcity of water,” Mr. Singh said that “rapid economic growth and urbanization are widening the demand supply gap.”


While India’s water consumption today is roughly in line with its availability, water use is set to shoot up as an expanding economy leads to improved standards of living.


Montek Singh Ahluwalia, the deputy chairman of India’s Planning Commission, said that unless action is taken, water consumption in India by 2030 is estimated to be “100% higher” than the water available.

“We will not be able to achieve the improvements in the levels of living that we want unless we can fill this gap,” he said at the water event. “If we are not able to meet this gap, what this means is that GDP growth cannot take place.”

For Mr. Ahluwalia, the policy focus should be on demand. Improving the efficiency of water use, he said, could help fill 80% of the gap. The rest would come from improving water supply.

Closing the supply-demand gap would require extensive policy reform. Water waste in India is rampant partly because there is no regulation of water extraction. For instance, a land owner can pump unlimited water from a well in his or her property. That makes a big difference in rural areas, since around 85% of India’s water is used in agriculture, according to data from the Energy and Resources Institute, a New Delhi research group.

The prime minister was critical of the legal framework currently in place: “One of the problems in achieving better management is that the current institutional and legal structures that deal with water in our country are inadequate, fragmented and need urgent reform.”

Mr. Singh said groundwater should be treated as a “common property resource” and spoke against power and water subsidies, which are also encouraging water waste.

But there is little the central government alone can do to make water use in the country 
more efficient, as it is an area handled at the state level.

Greater coordination between states is therefore needed for water management to significantly improve, Mr. Singh and Mr. Ahluwalia agreed.

India’s draft national water policy, presented by the Ministry of Water Resources earlier this year, recognizes the need for a nationwide legal framework on water governance. This may not go down well with state governments wary of the likely political backlash from restricting water use.

By Margherita Stancati@The Wall Street Journal: India


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