Archive · 3 Aug 2026
Water Volatility, Not Scarcity, Drives India’s Economic Challenge
India’s top economic adviser said that the biggest problem for the country’s economy is how unpredictable water can be.
He explained that sometimes a place can have both floods and droughts in the same year.
Because many people in India work in farming, they need reliable water.
He said we should treat water like roads or power, building more storage and reusing water.
He also said that projects should charge people the real cost of the service, not give it for free.
The government has spent a lot of money on roads, rail, and power, but more private money is needed.
He believes that India can keep growing if it plans for water and other infrastructure carefully.
India’s Chief Economic Advisor warns that water volatility, not scarcity, is the biggest economic challenge.
He calls for treating water as critical infrastructure, urging greater storage, groundwater recharge, reuse and desalination.
India’s economy is highly vulnerable to rainfall, with nearly half the population dependent on agriculture.
Infrastructure projects must be financed through user charges reflecting true economic cost, not free or below‑cost services.
The government’s capital expenditure has quadrupled to over ₹12 lakh crore, but private participation is needed to meet the financing gap.
- Who
- V. Anantha Nageswaran, Chief Economic Advisor of India
- What
- Warns that water volatility is the biggest economic challenge and calls for treating water as critical infrastructure
- When
- Monday, at the CII Infrastructure Summit
- Where
- CII Infrastructure Summit
- Why
- To highlight the vulnerability of India’s economy to rainfall and the need for better water infrastructure and financing
- Water Volatility
- Primary Economic Challenge
- Chief Economic Advisor
- V. Anantha Nageswaran
- Capital Expenditure
- ₹12 lakh crore
- Water Pricing
- Zero
- Infrastructure Funding
- Private Participation Needed