35
Demand Drivers and Key Concerns
The table below highlights the demand drivers and key
concerns arising from different sectors
Sector
Demand Drivers Key Concern
Domestic
• Population
growth Increased
per capita water
consumption
• Absence on
regulatory
binding on
usage and
wastage of water
Industry
• Expansion of
water intensive
industries like
power, iron &
steel, chemical
leading to
increase in water
demand
• Absence of loss
monitoring and
subsequent
reduction
• scheme
Agriculture
• Domestic food
grain demand
increasing with
increase in
population
• Demand for
water intensive
crops like
wheat, rice
are increasing
substantially
• Poor water
management
• Over-
exploitation of
ground water
• Reduction of
ground water
levels due to
climate change
Investment trend in Infrastructure, Sewage, and
Sanitation Services
India is the world’s second largest water consuming
country. The government’s spending on irrigation in India
is expected to be US$17.5 billion in 2012. With a market
size of over US$4 billion, the Indian water and wastewater
market is growing at the rate of 10%–12% every year.
Government-related projects contribute over 50% of the
revenues generated by this market, while the private
sector contributes the rest. The water and wastewater
treatment market segment is highly fragmented and
unorganized.
The Indian water market is $ 30 billion sized and, by
2030, this potential shall revolve around four key themes:
equipment supply, public private partnerships for water
supply and distribution, water treatment plants and water
EPC (engineering, procurement, and construction) business
and integrated water resource management for utilities.
Source: Planning Commission and Tata Strategic Analysis Infrastructure
2,015
2,030
45.6
6.73
3.56
2,010
Annual Investment potential in water infrastructure
in India (US $Bn)
CAGR
14%
