Climate Threat: Why Businesses Should Ware at an Increasing Water Risk

Copyright © HT Digital Streams Limit all rights reserved. The growth of India depends on water and climate change makes it scarcer for everyone’s economic growth and energy transition on reliable water. (HT) Summary Once a quiet constant in India’s growth story, water becomes a wildlife card on the risk front. If volatile molons, disappearing aquifers and rising industrial demand clash, the question is not just who will adapt, but which businesses will survive if taps dry. Businesses in India usually treated water as a steady input – not perfect, but reliable enough. Climate change is unraveling the assumption. Variable rainfall, falling groundwater tables, depletion of aquifers and the strengthening of flooding reform how firms get these most basic industrial input. Water has quietly become a new boundary of business risk. Rising temperatures, volatile mads, regular droughts and increasingly likely extreme weather events reduce reliable water availability while increasing demand, especially from water -intensive industries such as power generation, textiles and steel. By 2030, for example, 70% of the thermal power stations in India are expected to face severe water stress, threatening the energy security. India’s economy is thirsty. In addition to agriculture, textile factories, power plants, steel factories, food processors and drugmakers have long relied on an abundance and predictable water supplies. This certainty is back. As much as 17% of India’s groundwater blocks are already discussed too much and the situation worsens every year, according to the Central Water Commission. The Niti Aayog warns that nearly 600 million Indians live under high to extreme water tension. These numbers are important to the business, even if the Indian industry, unlike farming, is not India’s withdrawal of water. Industries rely on constant quality and timely offer. A thermal power station cannot run if the cooling water does not fail. Textile paint, pulp and paper factories and steel production all suffer if water is failed in quantity or reliability, or to be polluted. In India’s energy sector, where about 70% of electricity generation depends on thermal plants, water is life blood and accountability. In 2016, several plants in Karnataka, Maharashtra and Tamil Nadu were forced to end when reservoirs dried. According to the central electricity authority, more than 40% of India’s thermal capacity is in areas with high water stress. With climate change that makes rainfall more volatile, irrigation, power generation and municipal supply will be harder for water. Each restriction increases costs and delays the generation, even as the warm -up increases the demand for cooling purposes. In the Tiruppur textile nap, groundwater exhaustion is exacerbated by volatile recharge of the monsoon. Factories are facing rising pump costs and salt penetration. Large investments in recycling of wastewater and zero fluid distraction kept it above the floor, but at a sharp cost-which increased operating expenses by 10-15%. If they do not have such infrastructure, smaller groups remain exposed elsewhere. The shift is clear: Water risk is no longer about absolute deficiency, but volatility. Businesses built for stability must plan for fluctuations. This increasing water risk requires a reorientation by policymakers and businesses. It is not just an operational headache, but a macro risk. National modeling by the World Bank indicates that uncontrolled scarcity can shave as much as 6% of GDP of India by mid -century. Companies that do not praise in water voltage will face rising insurance premiums, stricter financing conditions and reputation setbacks from investors. India must integrate water scarcity into carbon price mechanisms, adopt dynamic water prices that reflect scarcity and promote market -based water trade to reward efficiency. A quick catch of models for circular water economics such as water-as-a-service, industrial symbiosis and digital water intelligence platforms can drive profitable conservation. Government initiatives such as Atal Bhujal Yojana and Nationwide Aquifer Mapping show increasing awareness in India. Yet industrial supervision is slow, more focused on compliance than resilience. The event is clear. The circular use of water giants, closed loop systems and real-time monitoring can be a competitive advantage. Firms that treat water as a strategic variable will lead. Early movers get benefits of lower energy intensity, reduced fines and better access to finance. For businesses that need reliable water, the risk of the margins of planning to core strategy must move. Risk dictionaries should include the forecasts of rainfall and reholding; Contracts must adopt possible offer disruption; And Capeex should be responsible for reuse, treatment, buffer storage, flexible cooling systems or alternative water sources. Firms taking preconceived steps can protect productivity, reduce costs and protect reputations. Those who do not do so will be exposed. Water will not stop flowing for everyone at the same time. But in a warm -up world, the places where the offer first will set new costs, limitation and event patterns. This will force investment decisions, regulatory design and corporate responsibility for change. Reforms can produce net benefits of £ 2-4 billion over two decades, as estimated, although it depends on the consistent implementation of the policy and sustained technology adoption difficult tasks, given our land reality. India’s economic growth and energy transition depends on reliable water. Yet the reliability is slipping. Firms cannot diversify it and do not make sense to it. The only way forward is adjustment through foresight, efficiency and collaboration between industries, governments and communities that share the same sinks. As rainfall patterns shift, the groundwater levels and hydrological regimes change, water is no longer just another input. It became a barometer of resilience. The author is an independent expert in New -Delhi, Kolkata and Odisha. Twitter: @scurve Instagram: @soumya.scurve. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #Climate Change #manuvering #business Read Next Story

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