India’s water crunch brews risks for beverage giants

LAWS IN INDIA BAR THE MOVEMENT OF LIQUOR ACROSS STATE BORDERS WITHOUT A SPECIAL PERMIT, EFFECTIVELY FORCING COMPANIES TO SET UP PRODUCTION IN EVERY STATE THEY WANT TO SELL IN DESPITE THE WATER SCARCITY

- REUTERS

Foreign companies operating in India have long grappled with complex regulations and confusing tax laws. In the northwestern state of Rajasthan, some of the world's biggest beverage firms face the additional challenge of securing and managing dwindling water supplies while navigating strict government rules and grievances of some local people who only get the resource piped-in once a week.

Nearly two-thirds of Rajasthan is covered by the Thar Desert, and its groundwater extraction ranks among the highest in India, adding to the economic pressures for the state in balancing the needs of its 85 million people, booming tourism business, industry and its big agricultural sector.