Would Private Sector be Inclined to Take up Initiatives to Address Water Crisis in India?

Executive Summary In the years to come, India will be highly vulnerable to the impacts of rising sea level, floods and droughts, water pollution, and the associated health hazards. In addition to the severe effect of water-related concerns on health and heat stress, water scarcity problems would also impact generation of electricity, both in hydel and thermal power sectors, industrial production, which often requires large volumes of water, and irrigation, which again is highly water-based. To address such severe concerns in the realm of unavailability of water in desired quantity and quality, many industry initiatives have been implemented. However, the challenge is huge and full industry participation in this endeavour is still awaited in India. Private sector participation would be a relevant and much-needed initiative to the cause of water management in the country. However, the inclination of private sector in taking up such initiatives has not been ascertained yet. Therefore, an empirical academic research was undertaken to determine (a) if there is an awareness in private sector in India with regard to existence and impacts of water crisis and (b) if such awareness would lead to voluntary participation on the part of private sector. A research instrument in the form of survey questionnaire was administered on a population of practising managers across the country. Thereafter, structural equation modelling was carried out to analyse the data, thus, obtained. The research concludes that there is significant awareness that (a) water crisis does exist in India, (b) there is a possibility of spread of disease due to water stress, and that (c) private sector could help in recycling, treatment of wastewater, and conservation initiatives. Further, the research also shows a significant link between awareness about disease impacts due to water stress and propensity to support individual initiatives. The awareness that private sector could help in recycling and treatment of wastewater and in conservation initiatives would lead to voluntary participation of private sector both in the organizational capacity as well as in managers taking up individual initiatives.