Author: sachin nandha, trustee and director
This article was originally published for the Sustainable Business Magazine.
India, a country of 1.4 billion people, is running dry. By 2030, India’s water demand is projected to be twice the available supply, putting hundreds of millions at risk and threatening 6% of GDP losses. Over 600 million Indians already face high-to-extreme water stress, and 21 major cities, including Delhi and Bengaluru, are expected to run out of groundwater this year. This is not just an environmental disaster—it’s an economic and geopolitical risk. Water shortages disrupt agriculture, manufacturing, and urban development. Farmers in Maharashtra face yearly droughts, while industries in Chennai shut down intermittently due to water rationing. Without urgent intervention, India’s economic ambitions could be paralyzed.
The Role of a UK-India Free Trade Agreement (FTA)
The UK and India are negotiating a £34 billion trade deal, and sustainability is a critical piece of the puzzle. A well-structured FTA could unlock investment, technology transfer, and financial partnerships to revolutionise India’s water security. Britain, although it has problems of its own, has nevertheless world-class expertise in water management, desalination, and smart metering could provide game-changing solutions. But how exactly can trade policy help quench India’s thirst?
Smart Tech & Data-Driven Solutions: The UK’s Secret Weapon
Water management in India still relies on archaic infrastructure—leaky pipes, unregulated borewells, and inefficient irrigation. The UK, on the other hand, has pioneered smart water technologies that could transform India’s water security. For example, Thames Water, which manages London’s supply, uses AI-powered leak detection to save millions of litres daily. Similar solutions could prevent India’s 40% water loss due to leaks. Furthermore, the UK has successfully deployed IoT-based smart water meters, reducing domestic water waste by 15-20%. Indian cities like Bengaluru and Chennai could replicate this model, while UK-based companies like Rezatec use AI and satellite imagery to map groundwater depletion and monitor illegal extraction. Such innovations could be a game-changer for Punjab and Haryana, where groundwater is vanishing at alarming rates.
An FTA could facilitate knowledge transfer, enabling Indian utilities and municipalities to collaborate with UK firms and adopt these technologies at scale, ensuring a significant reduction in water wastage and improved efficiency in distribution systems.
The Investment Gap: Unlocking British Capital
India needs to invest $270 billion in water infrastructure over the next decade. Currently, it falls short by at least $100 billion, leaving a massive funding gap. A UK-India FTA could provide a framework to secure the necessary investment, particularly through green bonds, public-private partnerships, and climate risk insurance. British financial institutions like HSBC and Barclays are already investing in climate-resilient infrastructure, and incentivising water-focused green bonds could drive billions into India’s pipelines and purification plants. Similarly, the UK’s Thames Tideway Tunnel, a £4.2 billion project, was built using PPPs. A similar model could help cities like Mumbai and Delhi develop world-class water recycling infrastructure.
The role of financial instruments in water sustainability cannot be overstated. By introducing climate risk insurance, British financial institutions could help Indian farmers and industries hedge against drought-related economic shocks. These financial mechanisms would be essential in ensuring that water security becomes an integral part of India’s economic planning, rather than a crisis response.
Real-World Success Stories: What’s Already Working?
A UK-India water partnership isn’t just hypothetical—it’s already happening. Delhi’s Water ATM Project, for instance, is an innovative initiative in which UK engineers have helped install solar-powered water ATMs, providing affordable, clean drinking water to urban slums. These ATMs dispense water for as little as 1 rupee per litre (less than 1p), improving health outcomes in high-risk areas. Likewise, farmers in drought-prone Maharashtra have adopted UK-designed precision irrigation systems, reducing water use by 60% while increasing crop yields. Meanwhile, UK-based water purification firms are partnering with Indian authorities to revive the Ganges, implementing bio-filtration technologies to tackle industrial pollution. These examples illustrate that when international expertise meets local implementation, sustainable solutions emerge.
The Role of the International Centre for Sustainability (ICfS)
The International Centre for Sustainability (ICfS) in London has the potential to act as a bridge between UK and Indian stakeholders, fostering a more strategic and coordinated approach to water sustainability. By facilitating high-level policy dialogues between UK and Indian water authorities, the ICfS can help align regulatory frameworks and share best practices in water governance. Additionally, the Centre is well-positioned to spearhead joint research initiatives, bringing together scientists, engineers, and policymakers to develop cutting-edge water conservation strategies.
Education and skill-building are also critical components of this collaboration. Through training programs and knowledge exchanges, the ICfS could help equip Indian engineers, policymakers, and local communities with the tools and expertise necessary to implement UK water management models effectively. By fostering an ecosystem where sustainability-focused innovation can thrive, the Centre can ensure that trade agreements are not just about commerce, but about creating a lasting impact on India’s water security.
The ICfS can also facilitate investment matchmaking, connecting British investors and technology firms with Indian entrepreneurs and local governments. This will ensure that solutions are not only implemented at scale but tailored to India’s diverse water needs, from rural villages to megacities.
The Road Ahead: Policy Recommendations & Next Steps
For a UK-India FTA to make a real difference in tackling India’s water crisis, policymakers must prioritize specific interventions. Water-smart incentives should be embedded within trade negotiations, ensuring that UK water tech can be imported duty-free and that joint ventures between UK and Indian companies are encouraged. Furthermore, the creation of a dedicated UK-India Water Investment Fund, backed by British development banks, could ensure that sustainable water solutions receive the financial backing necessary to scale. Capacity-building must also remain at the forefront, with training and exchange programs ensuring that knowledge transfer translates into actionable change on the ground. Finally, sustainability benchmarks must be incorporated into FTA agreements to prevent over-extraction and misuse, ensuring that water security remains a long-term priority rather than a short-term business opportunity.
Turning the Tide Together
Water is the ultimate resource war of the 21st century. Without urgent intervention, India faces a future of drought-driven migration, economic stagnation, and social unrest. But this crisis is not insurmountable. A UK-India Free Trade Agreement could be the catalyst India needs—bringing in world-class technology, securing long-term investment, and creating partnerships that put sustainability at the heart of economic growth.
The opportunity is immense, the stakes are high, and the time to act is now. The UK and India have a chance to redefine trade relations, not just for profit, but for the survival of a billion people. Will they seize it?
