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India's water shortage and its potential impact UPSC NOTE

 Concerns raised by Moody's

  • Moody’s Ratings warned that India’s growing water shortage and increasingly frequent climate change-driven natural disasters, amid a rise in consumption and rapid economic growth, could negatively impact the country’s sovereign credit strength

  • Currently rated Baa3 stable, which as per Moody's denotes the lowest investment grade rating, India is susceptible to increasing water stress, and any drop in water supply, for which it is heavily reliant on monsoon rains, could disrupt operations in factories and farms

  • This would spur inflation in food prices and declines in income for affected businesses and communities, while sparking social unrest

  • This, in turn, can exacerbate volatility in India’s growth and undermine the economy’s ability to withstand shocks given that more than 40% of the country’s workforce is employed in agriculture

  • Moody’s stressed that India is one of the sovereigns most vulnerable to risks associated with water management and has the poorest access to basic services, including water, among G20 economies.



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Learnerz IAS | Concept oriented UPSC Classes in Malayalam: India's water shortage and its potential impact UPSC NOTE
India's water shortage and its potential impact UPSC NOTE
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
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