India is projected to encounter a water demand double its available supply by 2030, leading to investment opportunities exceeding Rs 20 lakh crore in the next ten years, as per a report by PL Capital. The investment prospects encompass various areas such as water treatment, wastewater recycling, and sewage infrastructure development. Despite being home to nearly 18% of the global population, India possesses only about 4% of the world’s freshwater resources, resulting in escalating scarcity due to urbanization, industrialization, groundwater depletion, and agricultural demands.
The report emphasizes that the water security issue has become a national priority, necessitating substantial investments in treatment, recycling, distribution, and storage systems. Vikram Kasat, Chief Business Officer-Advisory at PL Capital, highlighted that unlike other infrastructure trends tied to economic cycles, investments in water security are fundamental, policy-driven, and imperative for sustainable progress. The surge in urbanization, industrial growth, and environmental regulations offers significant growth opportunities in water purification, reclamation, recycling, desalination, and reuse facilities.
Government initiatives like Jal Jeevan Mission, AMRUT 2.0, Namami Gange, and enhanced allocations through the Ministry of Jal Shakti are driving investments towards enhancing access to clean water, upgrading sewerage infrastructure, and improving wastewater treatment. The report identifies sewage treatment as a key investment area within the broader water infrastructure domain, citing an excess of 72,000 million liters of sewage daily.
Furthermore, the report underscores a capacity shortfall in treating these sewage volumes, leading to substantial wastewater discharge into the environment. This infrastructure gap is anticipated to attract investments in sewage treatment and wastewater reuse projects. Industries on the rise, including data centers, semiconductors, electronics manufacturing, green hydrogen, and specialty chemicals, are expected to emerge as significant consumers of industrial ultra-pure water.
