Fixing fault lines in wastewater market

India's success will depend on policy realism, fiscal innovation, and a cultural shift — from viewing wastewater as waste to recognising it as wealth

- Souryabrata Mohapatra, Amit Mitra & Sanjib Pohit

In a country where over 70% of urban wastewater is untreated and flows into rivers, lakes, and coastal zones, India's wastewater challenge is not merely ecological but existential.

India's water and wastewater treatment market, valued at $13.1 billion in 2023, is projected to reach $23.8 billion by 2033, with a 6.2% compound annual growth rate.

This reflects accelerating urbanization, climate fragility, and growing industrial water demand.

In 2020, urban centers generated 72,368 million liters per day (MLD) of sewage, but the installed treatment capacity was just 31,841 MLD.

As of December 2023, progress remains uneven across states: Maharashtra treats over 8,000 MLD, while Bihar lags at under 400 MLD despite similar population pressures.

This imbalance highlights a critical paradox—while India pursues piped drinking water to 146 million rural households through the Jal Jeevan Mission (JJM), it loses billions of liters daily due to inadequate wastewater treatment and reuse.

The industrial sector is a key player, with thermal power plants consuming 87.8% of all industrial water.

Sectors like food and beverage, pharmaceuticals, textiles, and chemicals contribute substantially to the demand for high-purity water and treatment technologies.

The industrial wastewater treatment sub-market was worth $1.44 billion in 2023 and is expected to grow to $2.4 billion by 2033.

Sewage treatment remains the second-largest segment, projected to grow from $5 billion in 2023 to $9.08 billion by 2033.

Water treatment, including desalination and recycling, leads the market, as it expanded from $6.65 billion to $12.37 billion over the same period.