Economic Implications of Water Resources Management in India

Water is a unique resource endowed by nature for the survival of all living organisms. There has been a steady increase in the demand for water in India over the years. The demand for water resources has been projected to register a much higher level than the availability of water resources. Though India receives rainfall above the world average, its distribution is erratic and varies across regions and much of the quantum of rainfall drains in to the seas and oceans. Many parts of our country reels under severe drought while many parts experience floods. Out of the country's total geographical area of 329 million hectares, about 45 million hectares are flood prone and the area prone to drought is not insignificant. Though India is known for its ancient farsightedness in water conservation knowledge, there has been increasing incidents of excessive, irrational or misuse of this vital resource in recent times. Moreover, agriculture is the backbone of Indian economy which uses the highest amount of water for irrigation. India has to produce food to about 17 percent of the world population and production of foodgrains is the responsibility of the agricultural sector. Development of water resources helps flood control, improves irrigation, ensures adequate drinking water supply, makes possible hydro power generation and helps industrial uses. Against this backdrop, this review article attempts to highlight the economic implications of water resources management in the Indian context. In the explanation of the implications, the availability water resources in the world as well as in India are presented. The demand for water resources in the years to come, need for water resources management, the broad problems in the Indian water sector and the future conservation measures are also highlighted in the article.