The Financialization of Water in India

 **The Financialization of Water in India: A Crisis Fueled by Profit and Power**

Water is life. In India, a nation of 1.5 billion people with only 4% of the world’s freshwater resources, this truth is starkly evident. Yet, a troubling trend is emerging: the financialization of water, where this vital resource is transformed into a commodity for profit, often at the expense of the common people. Inspired by *More Perfect Union*’s eye-opening video, *The Financialization of Water: How Wall Street is Taking Over Our Most Precious Resource*, this post explores how financialization is unfolding in India, the role of big businessmen and land ownership, and the urgent need to protect water as a public good.

### What is the Financialization of Water?
The *More Perfect Union* video reveals how Wall Street and financial institutions are turning water into a financial asset, from buying water rights to privatizing utilities and trading water futures on the Chicago Stock Exchange. This process prioritizes profit over equitable access, as seen in Puebla, Mexico, where privatization led to skyrocketing bills and unreliable service. In India, this trend is gaining traction, driven by global financial pressures and domestic policies that favor private investment over public welfare.[](https://www.weforum.org/stories/2021/05/4-ways-to-scale-up-finance-for-indias-water-sector/)

India faces a looming water crisis, with a projected 50% shortfall in water supply by 2030, according to UNICEF. With 18% of the global population but only 4% of its water resources, India is already water-stressed, ranking 120th on the Water Quality Index. Financialization exacerbates this crisis by commodifying water, detaching its value from its ecological and social role, and placing it in the hands of profit-driven entities.[](https://www.weforum.org/stories/2021/05/4-ways-to-scale-up-finance-for-indias-water-sector/)[](https://www.weforum.org/stories/2021/05/4-ways-to-scale-up-finance-for-indias-water-sector/)

### Financialization in India: A Growing Threat
In India, the financialization of water manifests through privatization, public-private partnerships (PPPs), and speculative investments in water infrastructure. The World Bank and Asian Development Bank have pushed for private sector involvement, framing it as a solution to water scarcity. For example, in Chennai, VA Tech Wabag is implementing Southeast Asia’s largest seawater desalination project, a ₹4,400 crore initiative to address water shortages. While such projects promise modern infrastructure, they often come with high costs passed on to consumers, mirroring the Puebla case where privatization led to 300-400% bill increases.[](https://www.fortuneindia.com/long-reads/theres-business-in-water/114012)[](https://www.fortuneindia.com/long-reads/theres-business-in-water/114012)

The video highlights how financial actors, including banks and private equity firms, acquire water utilities and rights globally. In India, similar trends are emerging. Vishvaraj Environment’s sewage treatment plants along the Ganga and Yamuna rivers, funded partly by Austrian banks, show how private investment is reshaping water management. These projects often operate on models like Build-Operate-Own-Transfer (BOOT), prioritizing financial sustainability over equitable access. The result? Higher costs for consumers and limited benefits for marginalized communities.[](https://www.fortuneindia.com/long-reads/theres-business-in-water/114012)

### The Role of Big Businessmen and Land Ownership
Land ownership in India, particularly by big businessmen, is deeply intertwined with water financialization. Water resources, especially groundwater, are tied to land, and controlling land often means controlling water. India’s largest landowners, such as the government, the Catholic Church, and tycoons like Kushal Pal Singh (DLF Limited), Godrej Industries, Nusli Wadia (Bombay Dyeing Group), and the Shapoorji Pallonji Group, wield significant influence over water-rich lands.[](https://www.moneycontrol.com/news/business/personal-finance/guess-who-indias-largest-landowners-are-1129773.html)

For instance, Godrej Industries owns nearly 2,000 acres of mangroves in Mumbai’s Vikhroli, a critical water-retaining ecosystem. Such landholdings give these entities access to groundwater and water bodies, which can be leveraged for profit through real estate or industrial projects. The *More Perfect Union* video notes how financial actors globally buy up land with “freshwater perks” for agriculture or biofuels, a trend visible in India where investors from countries like the U.S. and China have acquired land for such purposes.[](https://www.moneycontrol.com/news/business/personal-finance/guess-who-indias-largest-landowners-are-1129773.html)[](https://www.scientificamerican.com/article/corporations-grabbing-land-and-water-overseas/)

In Bengaluru, the transformation of rural land into urban real estate for “global-city” projects has triggered what scholars call “dispossession by financialization.” The Karnataka Industrial Areas Development Board (KIADB), backed by loans from the Asian Development Bank, facilitates land acquisition for industrial and urban projects, often displacing rural communities and prioritizing corporate interests. This process concentrates water control in the hands of elites, as land ownership grants access to groundwater, a critical resource in a country where 80% of groundwater is used for irrigation.[](https://www.tandfonline.com/doi/abs/10.1080/03066150.2020.1802720)[](https://www.tandfonline.com/doi/abs/10.1080/03066150.2020.1802720)[](https://en.wikipedia.org/wiki/Water_scarcity_in_India)

Big businessmen also influence water policy through political connections. For example, Ravindra Kishore Sinha, a Bihar-based security magnate, has leveraged political ties to expand his empire, reflecting how regional elites shape resource allocation. Such influence can steer water infrastructure projects toward profit-driven models, sidelining public needs. The World Bank’s push for municipal bonds and usage-based billing in India further enables this shift, as seen in Ghaziabad and Pimpri-Chinchwad’s recent bond issuances.[](https://www.reuters.com/article/us-india-business-north/from-indias-northern-backwaters-a-new-business-elite-rises-idUSBREA2223920140303/)[](https://www.weforum.org/stories/2021/05/4-ways-to-scale-up-finance-for-indias-water-sector/)

### The Human and Environmental Cost
The financialization of water in India has dire consequences:
- **Inequity**: Privatized water systems often charge higher rates, making water unaffordable for low-income households. In Delhi’s National Capital Region, 18% of households lack piped water and rely on costly private tankers or depleting groundwater, exacerbating inequality.[](https://pmc.ncbi.nlm.nih.gov/articles/PMC8758763/)
- **Environmental Degradation**: Over-extraction of groundwater, driven by profit motives, is causing land subsidence in areas like Delhi and Faridabad, with rates up to 11 cm/year. In Punjab and Haryana, 1.3 million and 700,000 submersible pumps, respectively, are depleting aquifers, fueled by subsidized electricity and loans from informal moneylenders.[](https://pmc.ncbi.nlm.nih.gov/articles/PMC8758763/)[](https://pulitzercenter.org/stories/wells-run-dry-debt-and-groundwater-depletion-india)
- **Loss of Public Control**: Financialization shifts water governance from democratic institutions to private entities. The *More Perfect Union* video’s Puebla example shows how privatization leads to neglect of infrastructure and public welfare, a risk India faces with projects like Chennai’s desalination plant.

### A Critical Perspective: Challenging the Narrative
The establishment narrative, backed by institutions like the World Bank, portrays privatization as a solution to India’s water crisis, citing the need for $114 billion to meet SDG water targets. However, this overlooks the social and environmental costs. Privatization often prioritizes “paying subscribers,” as seen in community RO water units in the Sundarbans, where non-subscribers face higher costs. The push for financial instruments like blue bonds or hybrid annuity models risks turning water into a speculative asset, echoing the water futures trading critiqued in the video.[](https://www.weforum.org/stories/2021/05/4-ways-to-scale-up-finance-for-indias-water-sector/)[](https://www.orfonline.org/research/water-valuation-and-pricing-in-india-imperatives-for-sustainable-water-governance)

Moreover, the role of big businessmen in land ownership raises questions about power dynamics. The concentration of land and water rights in the hands of tycoons like Kushal Pal Singh or the Shapoorji Pallonji Group mirrors global trends where corporate investors dominate resources. This undermines the democratic management of water, as private entities prioritize profit over sustainability.[](https://www.moneycontrol.com/news/business/personal-finance/guess-who-indias-largest-landowners-are-1129773.html)

### Solutions: Reclaiming Water as a Public Good
The *More Perfect Union* video calls for public control of water systems, a principle that resonates in India. Here are actionable steps to counter financialization:
- **Strengthen Public Governance**: The Jal Shakti Ministry, formed to streamline water management, must prioritize public oversight over private partnerships.[](https://en.wikipedia.org/wiki/Water_scarcity_in_India)
- **Promote Community Solutions**: Grassroots initiatives, like the Jal Bhagirathi Foundation’s water harvesting in Rajasthan, show how local efforts can ensure equitable access.[](https://en.wikipedia.org/wiki/Water_scarcity_in_India)
- **Regulate Land and Water Use**: Policies must limit corporate control of water-rich lands and curb groundwater over-extraction, as suggested by optimization models that reduce irrigation dependency.[](https://www.nature.com/articles/s41467-022-31122-9)
- **Invest in Sustainable Practices**: Drip irrigation, shade nets, and coastal reservoirs can enhance water efficiency without relying on costly privatization.[](https://en.wikipedia.org/wiki/Water_scarcity_in_India)[](https://en.wikipedia.org/wiki/Water_resources_in_India)

### Conclusion: Water is Not a Commodity
India’s water crisis is not just a matter of scarcity but of mismanagement and inequity, worsened by financialization. As the *More Perfect Union* video warns, allowing Wall Street and corporate elites to control water threatens the very fabric of society. In India, where big businessmen and land ownership amplify this trend, the stakes are even higher. It’s time to reclaim water as a public good, ensuring that every citizen has access to this lifeblood of our nation. Let’s demand policies that prioritize people over profits and sustainability over speculation. Join the fight to keep India’s water in public hands!

**Sources**:
- *The Financialization of Water: How Wall Street is Taking Over Our Most Precious Resource*, More Perfect Union, YouTube, 2023
- Web sources on water financialization, land ownership, and India’s water crisis[](https://www.weforum.org/stories/2021/05/4-ways-to-scale-up-finance-for-indias-water-sector/)[](https://www.moneycontrol.com/news/business/personal-finance/guess-who-indias-largest-landowners-are-1129773.html)[](https://en.wikipedia.org/wiki/Water_scarcity_in_India)

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