New Delhi.  Water scarcity in India, which is developing at the fastest pace in the world economically, is pointing towards a big crisis. Global rating agency Moody's has said that water scarcity can put India's creditworthiness in danger. At the same time, pressure will also increase on industrial sectors such as thermal power plants and steel which are related to water consumption.

Industrialization and urbanization increased water crisis 

According to Moody's, water levels are falling rapidly due to rapid economic development, industrialization and urbanization in India. Water consumption in India is very high due to the continuous increase in the already large population, which may reduce the availability of water per person.By the year 2030, the annual average per capita availability of water will increase to 1367 cubic meters from the current 1486 cubic meters. By the year 2030, India's population will increase from the current 1.43 billion to 1.51 billion.

climate change will have an impact 

According to Moody's, climate change will lead to more droughts, heatwaves and floods than before, which will worsen the situation, as India mainly depends on monsoon for its water supply. Monsoon rainfall is also decreasing.

Big cities like Bangalore and Delhi are facing severe water shortage these days. Moody's has said in its report that the shortage of water supply can affect agricultural production as well as industrial operations, which will lead to an increase in inflation and a decrease in the income of the people associated with industrial businesses and those affected by water.

This can lead to social unrest and overall, India's economic development will be affected by water scarcity. Moody's says that thermal power and steel plants use a huge amount of water for production. Due to water scarcity, the operations of these plants will be affected, which will reduce their revenue and their credibility in the market will be affected.

These measures should be taken 

According to Moody's, the government needs to increase investment in the field of water management as well as in the expansion of renewable energy. Also, measures should be taken to reduce water consumption in the industrial sector which uses more water.

Management of water will prevent the reputation of both the government and the industry from getting affected. At the same time, the financial market should come forward to invest in water management. The size of the financial market in India is still small, but is growing rapidly. The financial market can help the state government and companies to raise funds to solve the water problem.