Worsening water crisis can weigh on India’s sovereign credit strength, Moody’s says

MUMBAI: India’s worsening water shortage, triggered by high consumption amid rapid economic growth and frequent natural disasters, can negatively impact the South Asian nation’s sovereign credit strength, Moody’s Ratings said on Tuesday ( Jun 25 ).

Every summer, millions of Indians are affected by a shortage of water due to a shortage of it in farms, offices, and homes, but a severe thunderstorm this year has worsened the situation, particularly in Delhi and Bengaluru, a southern software hub.

” This is harmful to the record wellness of the king, as well as sectors that greatly consume waters, such as fuel power generators and metal- makers”, Moody’s Ratings said in a note.

” In the long term, expense in water management may alleviate threats from possible water shortages”, it added.

India’s regular monthly water availability per capita is likely to fall to 1, 367 cubic meters by 2031 from an previously- small 1, 486 square meters in 2021, according to the Ministry of Water Resources.

A levels below 1, 700 square meters indicates waters tension, with 1, 000 square meters being the boundary for water scarcity, according to the government.