Ripples of scarcity: the nexus between water poverty and India's socio-economic development

The research paper explores the intricate relationship between Water Poverty and socio-economic development in India at the sub-national level. Against the backdrop of India holding merely 4% of the world's freshwater resources but accommodating 17% of the global population, a critical water crisis is evident and projected to escalate. Leveraging cross-sectional data from Indian states/UTs, the study creates the Water Poverty Index (WPI) to gauge water scarcity and the Human Development Index (HDI) to measure socio-economic development. Using linear regression, the study investigates the impact of WPI components, i.e. water resources, accessibility, and environmental water needs, on human development. The states of Telangana and Haryana have performed poorly on the WPI, whereas Goa, Kerala and Meghalaya have emerged as top performers. Interestingly, the access components of the WPI have shown a significant positive correlation with human development. While water poverty components have been used to assess water resources, nothing is known about how these components relate to HDI in India. The study's findings can help policymakers better understand the nuances of water scarcity's effects and use them to advance India's socioeconomic growth, predominantly in states with high rates of water poverty, through the channels of better accessibility and investing in society’s capacity building.