India's Water Economy, Bracing for a Turbulent Future

India faces a turbulent water future. The current water development and management system is not sustainable; unless dramatic changes are made in the way in which government manages water. India will have neither the cash to maintain and build new infrastructure, nor the water required for the economy and for people. This Report examines the evolution of the management of India's waters, it describes the achievements of the past, and the looming set of challenges. The Report suggests what changes should be considered and how to manage the transition from the ways of the past to the ways of the future in a principled but pragmatic manner. The Bank will focus more sharply on the institutional reform and global best practice content of Bank-financed activities. This will mean greater emphasis on instruments that stimulate efficiency, accountability and flexibility (such as water entitlements, information, regulation, competition and pricing). It will also mean greater attention to the hidden groundwater economy, and more attention on building capacity in the public sector