Post on 12-Mar-2020
Nature and Organization of I di ’ W t EIndia’s Water Economy:
Insights from 10 years of IWMI‐Tata Water Policy Program
Tushaar ShahInternational Water Management Institute
t.shah@cgiar.org
Defining features of India’s water economy
• Unusually high reliance on groundwaterUnusually high reliance on groundwater
• Large and growing informal component with• Large and growing informal component with over reliance on self‐provision of water servicesservices
• Heavy emphasis on water resources• Heavy emphasis on water resources mobilization to the neglect of governance of infrastructure and service provisioninfrastructure and service provision
Unusually high reliance onUnusually high reliance on groundwater
South Asia and North China are the world’s biggest irrigated areas.gg g
India is the world’s largest userof groundwater in agriculture in the world.
300
India has over 20 million irrigation wells. Until 2000, it
India
200
250
m/
year
added 0.8 million/year.
100
150
cub
ic k
m
Every fourth cultivator owns an irrigation well; non
0
50
1940 1950 1960 1970 1980 1990 2000 2010
irrigation well; non-owners depend on groundwater markets
US W.Europe SpainMexico China IndiaPakistan Bangladesh Sri Lanka
markets.
Increasing irrigation Pakistan Bangladesh Sri LankaVietnam Ghana South AfricaTunisia
g gin canal and tank commands is with Pumped water
Over half of India’s irrigation pumps were installed after 1990..
Pre 1970-80Pre-1970
India’s GroundwaterJuggernaut is still
1980-90 After 1990Accelerating!!!
Pervasive groundwater Irrigation‐A South Asian Phenomenon
Each dot represents
5000 i i ti n 5000 irrigation wells
There is a similarly explosive growth in urban and i d i l d
Private groundwater industrial groundwater use.
The groundwater boom is a response to the inability of
boom is undermining, even cannibalizing on public water systems
Irrigation as well as urban water planning ignores
groundwater..p y
public systems to meet growing water demand.
After US $ 35 billion invested in canal irrigation since 1991, India has 3 m ha less under canal irrigation.
4260
Trends of public expenditure in major and medium irrigation and net irrigated area under different sources in India
30
36
40
50
rea
pric
es)
Groundwater
18
24
20
30
t irri
gate
d a
(milli
on h
a)
pend
iture
$, in
200
0 p
Canal command
6
12
10
20
Net
(
Exp
(billi
on U
S$
Investment
001960 1970 1980 1990 2000
(
Expenditure Tanks Canals Groundwater
Future of urban water demand..
High GW dependence
eDep
ende
nc
Higher SW access
% GW D
1,00,00010,000 10,00,000
Population
Large and growing informal component with over reliance on self‐provision of water
services
How effectively these instruments can be used to influence theBehaviour of millions of final users depends upon the degree ofFormalization of the water economy.
India’s Water EconomyIndustrialized country’s Water Economy
Formal Water Sector Formal SectorFormal Water Sector
Incidence of Laws, prices, taxes/subsidies, public policies Informal Water Economyfalls on service providers
Self‐provision dominates; laws, prices, policies fail to stick
Informal Sector
800
1000
Rural India: Predominence of Self‐supply of drinking water (NSSO 65th round)
600700800
Urban India: Public Supply Increasing but slowly (NSSO 65th Round)
189
762
50275
692
34301
665
29200
400
600
800
704
27124
736
247 17
743
208 23100200300400500600
0tap (public supply) wells & tubewells (self‐
supply)tanks, ponds, rivers, lakes
(CPR source)
49th round [JanJune 1993] 58th round [July‐Dec 2002]
65th round [June‐July 2009]
0tap (public supply) wells & tubewells (self‐
supply)tanks, ponds, rivers, lakes
(CPR source)
49th round [JanJune 1993] 58th round [July‐Dec 2002]
65th round [June‐July 2009]
Figure % of villages dependent on alternative irrigation sources: Survey of 4646 villages (NSSO 2003-report 487)
80 0100.0120.0
ges
81012
Indi
a's
ed a
rea
70-80% of rural house-
0.020.040.060.080.0
t, al & a d m a ar u b h al st a at a ra ya ar n a
% o
f vill
ag
02468
% s
hare
in I
gros
s cr
oppeHolds self-supply
domestic Water needs; 70-75% of Irrigators self-supply their
Nor
th-e
ast
Him
acha
Jam
mu
&K
eral
aJh
arkh
and
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amH
arya
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il N
adu
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ujar
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arna
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And
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adhy
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ttaR
ajas
than
Mah
aras
htra
% of surveyvillages with no irrigation source % of surveyvillages with canals as main source
Irrigation requirements using pumps. The only way IE can work with these is offering
% of survey villages with no irrigation source % of survey villages with canals as main source
Villages with groundwater as the main source % Villages dependent on other sources
% of India's Gross Cropped area
resource support. But regulation, managementAre possible only in towns and cities.
Per capita RURAL monthly expenditure on taxes and cesses including domestic water supply in 1999 (NSSO report 457)
4.00
4.50
10 00
12.00
For a long time to come, India’s prime water sector challenge will be the creation and sustainable
1 00
1.50
2.002.50
3.00
3.50
Rs/
pers
on/m
onth
4.00
6.00
8.00
10.00
of p
erso
ns s
ampl
ed management of water infrastructure and services..
0.00
0.501.00
000-225
225-255
255-300
300-340
340-380
380-420
420-470
470-525
525-615
615-775
775-950
>950
Expenditure classes (Rs per person per month)
R
0.00
2.00 % o
Taxes and cesses including water charges % of persons sampled
Per capita URBAN monthly expenditure on taxes and cesses including domestic water supply 1999 (NSSO report 457)
30 12Indians today pay just around
15
20
25
30
rson
/mon
th
6
8
10
12
ons
sam
pled
y p y jRs 10,000 crore for their domestic water supplies; but India needs to invest Rs 500-
0
5
10
000 300 350 425 500 575 665 775 915 1120 1500 >1925
Rs
per p
e
0
2
4
% o
f per
so600 thousand crore to assure protected water supply to all. The issue is not capital or t h l b t h t 000-
300300-350
350-425
425-500
500-575
575-665
665-775
775-915
915-1120
1120-1500
1500-1925
>1925
Expenditure classes (Rs per person per month)
Taxes and cesses including water charges % of persons sampled
technology; but how to pave the way for an organized water industry.
Community‐driven water harvesting and groundwater recharge movement in Saurashtra has revitalized dying agriculture
Meghal basin drainage netwrork Profusion of checkdams built by peopleLarge scale people’s andProfusion of checkdams built by peopleLarge‐scale people s and community water initiatives unknown in highly formalized
water economies of Industrialized societies.
These contain challenges as well gas opportunities.
The booming informal economy of peri‐urban waste water irrigation
• Urban India releases 15 BCM of waste water/year.Urban India releases 15 BCM of waste water/year. • Some of this is untreated nutrient rich water.• According to one estimate around 1 million ha ofAccording to one estimate, around 1 million ha of gross area is irrigated with urban waste water.
• Opportunity out of an adversity?Opportunity out of an adversity? • Can this recycling be done by design to minimize health risks and develop cost‐effective, sustainable p ,urban wastewater treatment regime?
O h i f bliOver‐emphasis of public policy on water resources development, overlooking the relationship between pthe water economy and the larger national economylarger national economy.
Obsession with resource development to the neglect of infrastructure and service provision.
Abundant water resources = Improved Water access? NoNo
• Physical and economic water scarcity;
• Improved water access= f(Improved governance of the water economy Gw);
• Gw =g(economic development; x, y, z)
• Water poverty index = f( access to water; water resources; capacity; water use efficiency; water environment)environment)
Figure 2 Water Access Poverty and Water Scarcity: How Little they Have to Do with Each Other
25
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Countries arranged in ascending order of water resources/capita
Figure 3 Correlates of Water Poverty: Water Scarcity or Underdevelopment?
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y = 0.1905x + 42.643250
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Water Poverty Index Water Resources IndexWater Poverty Index Water Resources IndexHuman Development Index Linear (Water Poverty Index)Linear (Water Resources Index)
Figure 4 Water Access Index and PPP-adjusted GNP/capita (US $)
25 40000 00y = 0.102x + 5.727
R2 = 0.683620
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endowments.
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Access Resources GNP per caput PPP adjusted (US $) Linear (Access)
Figure 5 Water Environment Index and PPP adjusted GNP
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Environment Kuznet’s Curve: E. degradation is not
i i bl h b
2
4 inevitable to growth; but growing demand for
environment amenity and changing structure of output
00 20 40 60 80 100 120 140 160
147 Countries in ascending order of PPP adj. GNP
g g phelp .
Transformation of Informal Water Economies with Overall Economic GrowthStage I: Completely
InformalStage II: Largely
InformalStage III: Formalizing Stage IV: Highly Formal
Water Industry
% of users in the <5% 5 35% 35 75% 75 95%% of users in the formal sector
<5% 5-35% 35-75% 75-95%
Examples Sub-Saharan Africa India, Pakistan, Bangladesh
Mexico, Thailand, Turkey, Eastern China
USA, Canada, Western Europe, Australia
Dominant mode of Self-supply and informal Partial Public Private-public provisioning; Rise of modern water water service provision
mutual-help community institutions
Provisioning but self-supply dominates
attempts to improve service and manage the resource
industry; High Intermediation; self-supply disappears
Human, technical, financial resources used/km3 of water diversion
% of total water use self-supplied
Rural population as % of total
Cost of domestic water as % of per caput income caput income
Cost of water service provision
Concerns of the G t
Infrastructure creation in Welfare Mode
Infrastructure and Water services especially in Urban
Infrastructure and service in towns and villages; Cost
Integrated mgt. of water infrastructure service Governments Welfare Mode services, especially in Urban
areas in a welfare modetowns and villages; Cost recovery; Resource protection
infrastructure, service and resource; Resource protection
Institutional Arrangements
Self-help; mutual help and feudal institutions dominate
Informal Markets; Mutual help and community management institutions
Organized service providers; self-supply declines; informal institutions decline in significance
Self-supply disappears; all users get served by modern water industry.
Highlights
• During the past six decades, India’s water withdrawals have increased faster than population growth.
d h d h d l d h ld• India has emerged as amongst the most densely irrigated regions in the world.
• India used less than 20 BCM of groundwater for all uses around 1960. Today, India is the groundwater champion of the worldIndia is the groundwater champion of the world.
• India’s water economy is highly informal, with over 75 percent of water volume and water users outside the ambit of direct regulation or o u e a d ate use s outs de t e a b t o d ect egu at o ointermediation.
• As a result, India’s water economy is driven more by near‐ term incentives and jugad technology rather than a well‐organized water industry.
• The dynamic linkages between the water economy and the larger national economy determine the ease of sustainable water governanceeconomy determine the ease of sustainable water governance.
Th k f h iThank you for the opportunity.
2. Does water scarcity cause water poverty? The Water Poverty Index for 147 countries
WPI Component and its weight
Sub-components
Water Resource Availability (20%)
• Internal freshwater flows• External inflows( )• Population
Access to Water(20%)
• % of population with access to clean water• % of population with access to sanitation• access to industrial water compared to need• access to industrial water compared to need• access to irrigation compared to need for irrigation
Capacity(20%)
• ppp adjusted per capita income• under-five mortality rates• education enrolment rates• Gini co-efficient for income distribution
Water Use efficiency(20%)
• Domestic water use in litres/day• Share of water use by industry adjusted by sectoral share in GDP(20%) Share of water use by industry adjusted by sectoral share in GDP• Share of water use by agriculture adjusted by its share in GDP
Environment(20%)
Indices of• Water quality• Water stress (pollution)• Environment regulation and management• Informational capacity• Biodiversity based on threatened species