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India Water and Wastewater Treatment Sector

Overview

Water and wastewater treatment is the largest environmental technology segment for U.S. exports to India. India has the 5th largest water and wastewater treatment market in the world, valued at approximately $11 billion. It is expected to grow to over $18 billion by 2026.

With 18% of the world’s population but only 4% of the world’s water sources, India grapples with water scarcity in many regions. To overcome the challenges posed by the growing demand for water, public and private sector facilities have ambitious plans to develop comprehensive water and wastewater treatment and distribution infrastructure. The country’s demand for high-end treatment technologies is growing exponentially.

India has rolled out several national initiatives to expand basic infrastructure and address environmental and public health challenges. The Jal Jeevan Mission, launched in 2019, aims to get safe and adequate drinking water via functional household tap connections to all rural households by 2024. Various other governmental initiatives, such as the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), National Mission for Clean Ganga (NMCG), and Community Drinking Water Schemes, contribute to the growth of the Indian water and wastewater treatment market.

Opportunities for U.S. Companies

These country-wide projects are creating opportunities for cutting-edge technologies including smart water meters, water quality monitoring systems, water management-related IT systems, tertiary treatment technology, and water-related engineering, procurement, and construction services.

Technologies relating to groundwater management, municipal water treatment and infrastructure, wastewater treatment and sanitation services, Zero Liquid Discharge (ZLD), desalination, and water monitoring are other high-potential segments for U.S. providers to explore in India.

Challenges

U.S. exporters of environmental technologies and services will need to address Indian market challenges including high tariffs, lax intellectual property rights protection and enforcement, non-transparent and unpredictable regulatory policies, and price sensitivity.

Despite some challenges of doing business in India, U.S. environmental companies - including firms in the wastewater treatment sector - have a strong worldwide reputation for quality, innovative technologies and after-sales service. These attributes are important factors helping to make U.S. businesses in this sector competitive in India’s marketplace.

For entry into the Indian market, U.S. companies should identify quality partners who know this market and are well-versed in procurement issues. Strategic planning, due diligence, and consistent follow-ups are essential for doing business successfully in India.

U.S. companies can monitor U.N. Development Business, World Bank, Asian Development Bank, and the Japan Bank for International Cooperation for soft loan and grant-funded project announcements. These projects offer significant front-end consulting opportunities and the possibility to supply equipment during the project implementation phase.

The U.S. Commercial Service team in India can help with your market entry strategies. If you wish to pursue market opportunities in this region, please reach out to your local U.S. office or contact the environmental technologies team at the U.S. Commercial Service in India.