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US Voice: Water crisis may reduce India’s credibility

Sagar Patel

By Sagar Patel

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There is water crisis in Delhi.Image credit source: Getty Images

Increasing water scarcity in India may affect the agricultural and industrial sectors, which is detrimental to the country’s creditworthiness, because rising food inflation and declining incomes may lead to social unrest. Ratings agency Moody’s said in a report Tuesday that reduced water supplies could affect agricultural production and industrial work, resulting in higher food prices. This could be detrimental to the creditworthiness of sectors that consume large amounts of water, such as coal-based power producers and steel manufacturers, etc.

The report says India’s rapid economic growth, as well as rapid industrialization and urbanization, will reduce water availability in the world’s most populous country. Apart from this, the water crisis is worsening due to the rapid increase in the adverse effects of climate change, as climate-related events such as droughts, heat waves and floods are continuously increasing.

Water consumption is increasing

Moody’s said in a report on environmental risks facing India that water scarcity is increasing in India, as water consumption is increasing amid increasing natural disasters due to rapid economic growth and the adverse effects of climate change. . Moody’s Ratings said in the report that this is detrimental to creditworthiness as well as water-intensive sectors such as coal-fired power generators and steel manufacturers. Investing in long-term water management can reduce the risk of potential water shortages.

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delhi water crisis

This report comes at a time when the water crisis has become a political issue in some parts of the national capital. Delhi Water Minister Atishi, who went on hunger strike on June 21 over the issue, was admitted to the hospital on Tuesday morning after her health deteriorated. Citing data from the Ministry of Water Resources, Moody’s said India’s average annual per capita water availability is likely to decline to 1,367 cubic meters by 2031. It is already less than 1,486 cubic meters in 2021. According to the ministry, a lower level at 1,700 cubic meters indicates a water crisis.

Over the past decade, multilateral lenders have supported the Indian government’s efforts to provide clean water to rural communities, according to a World Bank report from February 2023. More than 20 million people have benefited from multiple projects with total of 1.2 billion dollars.

(with language input)

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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