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India wants more factories. But where’s the water?

By · Published by Everything Blog

In short

Industrial water requirements are on track to jump roughly fourfold between 2005 and 2030, putting acute pressure on regions where groundwater is already over-exploited. Both traditional thermal utilities and emerging sectors like semiconductor fabs face heavy disruption risks from supply cuts. To safeguard operations without depleting local community freshwater reserves, manufacturers in hubs like Chennai, Surat, and Nagpur are increasingly procuring treated wastewater from municipal sewage plants for cooling needs.

Key points

  • Expanding industrial sectors like data centres and semiconductor fabrication require unin…: Expanding industrial sectors like data centres and semiconductor fabrication require uninterrupted water access to remain commercially viable.
  • Severe water deficits are transforming basic utility access from a minor compliance matte…: Severe water deficits are transforming basic utility access from a minor compliance matter into a vital strategic risk for business growth.
  • Utilizing municipal sewage treatment output allows industrial parks to scale operations w…: Utilizing municipal sewage treatment output allows industrial parks to scale operations without depleting vital public freshwater resources.

Sources checked by our analysis pipeline: 1

From steel mills to semiconductor fabs, no major industry can run without water. India’s case is more alarming because water as a resource has already been stretched in many parts of the country, and it is no longer just a civic concern but has quickly become a business constraint with livelihoods at stake.

The question of the hour is not just how much water India needs to keep its growth engine humming but whether the problem can be solved by finding new sources of water or opting for ways to recycle more water that goes unused and to waste.

“Water will not stop India's industrial growth nationally, but it will decide which clusters grow and at what cost,” said Sumouleendra Ghosh, Global Infrastructure Water Sector Lead, KPMG and Partner, KPMG India.

Also Read | India's growth story runs through water

That risk is already visible. NITI Aayog's Composite Water Management Index had projected that water demand could reach twice the available supply by 2030, with a potential 6% loss in GDP. Its 2019 assessment also estimated the rise in industrial…

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