The Indian water challenge

Internationally, there is a rapidly growing problem that is not being fully acknowledged. The rate at which water is used to produce food means that, in the not-too-distant future, we will not have enough water to cope with demand - by 2030, water withdrawals will exceed natural renewal by more than 60 per cent. Nowhere is this an issue more than in India.

The pressing issue was highlighted in a report conducted by the Water Resources Group (WRG), of which Nestle is a member. India's water supplies are suffering due to the culmination of a number of factors. The country's rapid rate of industrialisation means that energy needs are increasing while the surface area on which water can be collected is on the decline. And more prosperity combined with an increase in population drives both water withdrawals for agriculture - by far the biggest water user in the country - and municipal supplies. This, coupled with an insufficient level of knowledge in terms of water-use efficiency (and leakage in the case of municipal water), could spell disaster for India's water future.

The WRG report, Charting Our Water Future: Economic Frameworks to Inform Decision-making, was able to show the orders of magnitude of the gap and the cost to close it. But actually, still relatively little is known about the ins and outs of India's potential crisis. In order to encourage a greater level of understanding of India's risks, it is absolutely imperative that more detailed assessments are carried out. This will require thorough studies into the impact that water shortage would have on different socio-economic groups and different geographical settings in the vast nation.

More detailed studies may help to bring cohesion between a now-disparate array of relevant parties. As it stands, the private sector, government and Indian public have reached no collective consensus on the issue and how it should be dealt with. If a greater understanding of the situation and the genuinely pressing concerns inherent in it is reached, it will help provide a sense of urgency. This will hopefully lead to more open discussions and thus a national agreement on just what needs to be done.

It is essential that both the private and public sectors in India realise that it is not merely agriculture that is draining water resources. A study carried out by The Columbia Water Centre (CWC) along with the Federation of Indian Chambers of Commerce and Industry (FICCI) shows that, after agriculture, the industrial sector in India is the second highest user of water. The study considered a range of 27 industries in India, including the likes of textiles, oil, retail, pharmaceuticals and food processing. It spanned differing enterprises - from the small and local to the large and international.

The study unearthed some very interesting results. It seems that there is a general awareness of the future risks of water shortage, with 87 per cent of the companies believing that limitations in water supply will affect their business within the next decade. Eighty-three per cent cited inadequate water availability as a major risk affecting the companies' bottom line.

The study also revealed some promising advances, with the respondents tending to agree that it is the shared responsibility of companies across sectors to join hands with communities and governments to work on programmes for water conservation. Nearly 80 per cent of the industries surveyed said that they have already undertaken waste-water treatment and re-use - making the most of their water supplies by recycling it. Plus, a large number of respondents felt that discussions on water demand management and re-use should not only be restricted to senior management; it was also something they talked about to plant managers and employees.

Looking to the future, it is now imperative that the report's positive findings are harnessed and progressed. The first logical step is to create a framework of governmental and non-governmental bodies to work together in researching and discussing water use and its future. Once findings are made and decisions are reached, it is essential that these be communicated clearly across all sectors in India to ultimately develop a comprehensive strategy.

Secondly, lines of communication must be opened between specialist researchers and ground-level local businesses who truly understand the nuances of regional environments. If they work together, they will gain a far more sophisticated level of understanding of the complex situation in which the country currently finds itself.

As a whole, this is an urgent issue that must be dealt with speedily and with a fully comprehensive understanding of the issue and its potential consequences, and of solutions. If we move now, we may be able to divert crisis for India in the future. The Water Resources Group - already involved in a project in Karnataka - is also willing to support initial analytical efforts and further steps towards solutions in other Indian states.

The author is chairman of the board, Nestle, Switzerland; chairman of the 2030 Water Resources Group and a member of the Foundation Board of the World Economic Forum.