Not politics, not interest rates: India’s surging economy at risk from water

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Residents fill their containers from a tap that dispenses water twice a day at a slum in New Delhi on June 27, 2024. (REUTERS)
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Updated 05 July 2024
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Not politics, not interest rates: India’s surging economy at risk from water

  • The world’s most populous nation has suffered from water shortages for decades, but crises are coming around with increasing frequency
  • Contaminated water kills about 200,000 Indians each year, according to the government

NEW DELHI: In the Vivekananda Camp slum, adjacent to the US embassy in New Delhi, communal taps supply brackish water for about two hours a day. Water delivered by tankers provides one additional bucket to each of its 1,000 residents for drinking and cooking.
In parts of the arid state of Rajasthan, southwest of the Indian capital, tap water is available once every four days for an hour. In rural areas near Mumbai, women and children travel more than a mile to get water.
Bengaluru, India’s tech hub of 14 million people, reeled under a water shortage this year and had to rely on tanker deliveries.
“We don’t wash the floor or do the laundry for days sometimes,” said Sampa Rai, a 38-year-old in Delhi’s Vivekananda Camp, who scrambles before dawn every day to meet the first tanker delivering water. “Not even the dishes. We have to manage with what we have.”
The world’s most populous nation has suffered from water shortages for decades, but crises are coming around with increasing frequency. This year, for example, the summer has been one of the hottest on record and the crunch has worsened with rivers and lakes drying up and the water table falling.
The shortages are affecting rural and urban Indians alike, disrupting agriculture and industry, stoking food inflation and risking social unrest. Contaminated water kills about 200,000 Indians each year, according to the government. People and the economy are suffering.
That is adding urgency to public and private-sector efforts to conserve the resource, find ways to recycle waste water and reduce the country’s over-reliance on the annual monsoon, especially in the agricultural sector.
Ratings agency Moody’s warned last week that India’s growing water stress could affect its growth, which at a projected 7.2 percent this April-March fiscal year is the highest among major economies.
“Decreases in water supply can disrupt agricultural production and industrial operations, resulting in inflation in food prices and declines in income for affected businesses and workers, especially farmers, while sparking social unrest,” Moody’s said.
The government plans to more than triple waste water recycling by the end of the decade to 70 percent, according to a federal government policy document dated Oct. 21, 2023 that listed priorities for the next five years.
Krishna S. Vatsa, a senior official at the state-run National Disaster Management Authority, confirmed the targets in an interview last week.
Authorities also plan to cut the extraction of fresh water — ground water and surface water from rivers and lakes — to less than 50 percent by the end of the decade from 66 percent, the highest rate in the world, said the document, which has not been made public and was reviewed by Reuters.
It will also launch a national village-level program this year to recommend crops to farmers based on local water availability, Vatsa said.
Details of plans to address the water crisis have not been previously reported.
Prime Minister Narendra Modi has already ordered authorities to build or refurbish at least 75 lakes in each of the 785 districts of the country. The government says work has been started or completed on more than 83,000 lakes. Experts say such lakes can help recharge the water table.
Modi launched a near $50-billion program in 2019 to provide all rural households with tap water. The government says it has now covered 77 percent of more than 193 million such families, up from 17 percent five years ago, but residents and experts say not all pipes have water.
“It makes the issue of conservation far more urgent,” Vatsa said. “You cannot sustain such a national pipeline without the availability of water. The pipes will run dry.”
He agreed some taps could already be dry.

Water stressed
India relies substantially on the annual monsoon for its 1.42 billion people and its largely rural-based economy, where water-intensive crops like rice, wheat and sugarcane take up more than 80 percent of the overall supply.
The monsoon itself is prone to severe and extreme weather conditions. Catchment areas are getting scarce because of rapid urbanization, so even in a good monsoon, much of the rainwater drains off into the sea.
India’s annual per capita water availability, at about 1,486 cubic meters, is set to fall to 1,367 cubic meters by 2031 as its population grows, government projections show. The country has been “water stressed,” defined as per capita availability of less than 1,700 cubic meters, since 2011.
“We have a crisis now every year,” said Depinder Singh Kapur at Indian research body Center for Science and Environment.
“Earlier it used to be drought years versus normal years, now a water crisis is happening every year and with more intensity.”
There are pockets where private enterprise is addressing the crisis.
In Nagpur, a city of 3 million people, the Vishvaraj Group said it helped build a $100 million plant in 2020 that treats 200 million liters of sewage per day, extracting 190 million liters of treated water that it sells to two thermal power plants.
Founder Arun Lakhani said the freed up fresh water will be enough to take care of the expected population growth of the city for the next 35 years.
Some industries are investing in waste water recycling and rain harvesting to cut their dependence on fresh water.
Tata Steel plans to cut its fresh water consumption to less than 1.5 cubic meters per ton of crude steel produced at its Indian operations by 2030, from about 2.5 cubic meters now. JSW Steel also has similar plans.
“At least to plug the gaps in urban areas, treated waste water is going to be one important resource that we need to start acknowledging,” said Nitin Bassi at Indian think-tank The Council on Energy, Environment and Water.
Experts say nearly 90 percent of water supplied to homes can be recycled, but infrastructure for water distribution and sewage treatment has failed to match the growth of major cities and untreated waste ultimately flows into rivers.
Modi’s administration is adding sewage treatment capacity to lift the current rate of 44 percent in urban areas so more water can be recycled and used in industries, agriculture and other areas.
Between 2021 and 2026, it plans to invest about $36 billion to ensure equitable water distribution, reuse of waste-water and mapping of water bodies, the government has said.

Thirsty farmers
The cultivation of crops like rice in semi-arid states has led to rampant extraction of groundwater through borewells and steep falls in water tables, according to government and industry officials.
“The elephant in the room is agriculture,” said Lakhani of Vishvaraj. “We still use flood irrigation, we are not on drip or sprinkler irrigation. If we save just 10 percent water used in agriculture, it will take care of water problems of all the Indian cities.”
The government plans to implement a nationwide rural program on water use this year, said Vatsa, the disaster management official.
“For every village we need to have water budgeting,” he said. “How much water is available? How much should be used for irrigation? How much should be used for your domestic purpose? That would determine what kind of crops you are going to plant.”
Asked about possible resistance from farmers, who are a powerful voting bloc, he said: “There’s no other choice. The water table is just going down and at some point it becomes completely unviable. The borewells fail.”


16 dead, thousands of businesses destroyed after Kenya protests

Updated 26 sec ago
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16 dead, thousands of businesses destroyed after Kenya protests

The marches had been called to mark one year since anti-tax demonstrations
“What unfolded yesterday was not a protest. It was terrorism disguised as dissent,” Kipchumba Murkomen, interior cabinet secretary, said

NAIROBI: At least 16 people died in protests across Kenya on Wednesday, Amnesty International said Thursday, as businesses and residents were left to clean up the devastation in the capital and beyond.

The marches had been called to mark one year since anti-tax demonstrations that peaked when a huge crowd stormed parliament and dozens were killed by security forces.

The anniversary marches began peacefully Wednesday but descended into chaos as young men held running battles with police, lit fires, and ripped up pavements to use as projectiles.

“What unfolded yesterday was not a protest. It was terrorism disguised as dissent,” Kipchumba Murkomen, interior cabinet secretary, said in a televised speech.

“We condemn the criminal anarchists who in the name of peaceful demonstrations unleashed a wave of violence, looting, sexual assault and destruction upon our people,” he added.

In Nairobi’s business district, the epicenter of the unrest, AFP journalists found entire shopping centers and thousands of businesses destroyed, many still smoldering.

At least two banks had been broken into, while businesses ranging from supermarkets to small electronics and clothing stores were reduced to ashes or ransacked by looters.

“When we came we found the whole premise burnt down,” said Raphael Omondi, 36, owner of a print shop, adding that he had lost machines worth $150,000.

“There were guys stealing, and after stealing they set the whole premises on fire... If this is what protest is, it is not worth it.”

“They looted everything... I do not know where to start,” said Maureen Chepkemoi, 32, owner of a perfume store.

“To protest is not bad but why are you coming to protest inside my shop? It is wicked,” she added.

Several business owners told AFP that looting had started in the afternoon after the government ordered TV and radio stations to stop broadcasting live images of the protests.

Amnesty International’s Kenya director Irungu Houghton said the death toll had risen to 16.

Rights group Vocal Africa, which was documenting the deaths and helping affected families at a Nairobi morgue, said at least four bodies had been brought there so far.

“All of them had signs of gunshots, so we suspect they all died of gunshot wounds,” its head Hussein Khalid told AFP.

“We condemn this excessive use of force,” he said. “We believe that the police could have handled themselves with restraint.”

“You come out to protest police killings, and they kill even more.”

A coalition of rights groups had earlier said at least 400 people were wounded, with 83 in serious condition in hospital. It recorded protests in 23 counties around Kenya.

Emergency responders reported multiple gunshot wounds, and there were unconfirmed local media reports that police had opened fire on protesters, particularly in towns outside the capital.

There is deep resentment against President William Ruto, who came to power in 2022 promising rapid economic progress.

Many are disillusioned by continued economic stagnation, corruption and high taxes, as well as police brutality after a teacher was killed in custody earlier this month.

Vehicle hits pedestrians near school in Beijing: Chinese police

Updated 13 min 28 sec ago
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Vehicle hits pedestrians near school in Beijing: Chinese police

  • A grey SUV wedged against a tree as several people and clothing were seen in the road
  • “On June 26, 2025, at around 13:00, a traffic accident occurred near the intersection of Yucai Road and Dongmen Street in Miyun district,” local police wrote

BEIJING: A vehicle crashed into pedestrians in an “accident” near a school in Beijing on Thursday, Chinese police said, with footage shared online appearing to show young people lying injured in the street.

Videos geolocated by AFP to an intersection in Miyun district in the northeast of the capital showed a grey SUV wedged against a tree as several people and clothing were seen in the road.

In one clip a bloodied young person was seen being given first aid by somebody in white overalls.

“On June 26, 2025, at around 13:00, a traffic accident occurred near the intersection of Yucai Road and Dongmen Street in Miyun district,” local police wrote in an online statement.

A 35-year-old man surnamed Han “collided” with people “due to an improper operation,” it said, adding those injured were taken to hospital.

It did not give the number of injured.

“The accident is under further investigation,” the statement said.

China has seen a string of mass casualty incidents — from stabbings to car attacks — challenging its reputation for good public security.

Last year a man who plowed his car into a crowd of mostly school children in central China was handed a suspended death sentence with a two-year reprieve.

In November 2024 the attacker named as Huang Wen repeatedly rammed his car into a crowd outside a primary school in Hunan province.

When the vehicle malfunctioned and stopped, Huang got out and attacked bystanders with a weapon before being apprehended.

Thirty people, including 18 pupils, sustained minor injuries.

Some analysts have linked the incidents to growing anger and desperation at the country’s slowing economy and a sense that society is becoming more stratified.

In November last year, a man killed 35 people and wounded more than 40 when he rammed his car into a crowd in the southern city of Zhuhai, the country’s deadliest attack in a decade.

And in the same month, eight people were killed and 17 wounded in a knife attack at a vocational school in the eastern Chinese city of Yixing.


Lavrov says NATO spending increase won’t significantly affect Russia’s security

Updated 44 min 14 sec ago
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Lavrov says NATO spending increase won’t significantly affect Russia’s security

  • NATO allies on Wednesday agreed to raise their collective spending goal to 5% of GDP over the next decade

MOSCOW: NATO’s decision to increase defense spending will not significantly affect Russia’s security, Foreign Minister Sergei Lavrov said on Thursday.

NATO allies on Wednesday agreed to raise their collective spending goal to 5 percent of gross domestic product over the next decade, citing what they called the long-term threat posed by Russia and the need to strengthen civil and military resilience.

“As for the impact of this 5 percent goal on our security, I don’t think it will be significant,” Lavrov told a press conference.

“We know what goals we are pursuing, we don’t hide them, we openly announce them, they are absolutely legal from the point of view of any interpretation of the principles of the UN Charter and international law, and we know by what means we will always ensure these goals.”

NATO adopted the higher spending target in response to pressure from US President Donald Trump for European members to pull their weight, and also to European fears that Russia poses a growing threat to their security following the 2022 invasion of Ukraine.

Russia, which is spending more than 40 percent of this year’s budget on defense and security, denies any intention to attack a NATO state.

The Kremlin accused the alliance this week of portraying Russia as a “fiend of hell” in order to justify its “rampant militarization.”


Myanmar burns confiscated drugs worth around $300 million

Updated 50 min 57 sec ago
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Myanmar burns confiscated drugs worth around $300 million

  • The destroyed drugs included opium, heroin, methamphetamine, marijuana, ketamine and the stimulant known as ice
  • Myanmar has a long history of drug production linked to political and economic insecurity caused by decades of armed conflict

YANGON: Officials in Myanmar’s major cities destroyed about $300 million worth of confiscated illegal drugs Thursday.
The destroyed drugs included opium, heroin, methamphetamine, marijuana, ketamine and the stimulant known as ice, or crystal meth, Yangon Police Brig. Gen. Sein Lwin said in a speech at a drug-burning ceremony.
The drug burnings came nearly a month after UN experts warned of unprecedented levels of methamphetamine production and trafficking from Southeast Asia’s Golden Triangle region, where the borders of Myanmar, Laos and Thailand meet, and Myanmar’s eastern Shan State in particular.
The production of opium and heroin historically flourished there, largely because of the lawlessness in border areas where Myanmar’s central government has been able to exercise only minimum control over various ethnic minority militias, some of them partners in the drug trade.
The UN Office on Drugs and Crime (UNODC) said in a May report that the political crisis across the country after the military takeover in 2021 — which led to a civil war — has turbocharged growth of the methamphetamine trade.
In the country’s biggest city, Yangon, a massive pile of drugs worth more than $117 million went up in a blaze, Sein Lwin said.
Similar events to mark the International Day Against Drug Abuse and Illicit Trafficking also occurred in the country’s second-largest city of Mandalay, and in Taunggyi, the capital of eastern Myanmar’s Shan state, all areas close to where the drugs are produced.
A police official from the capital Naypyitaw told The Associated Press that the substances burned in three locations were worth $297.95 million. The official spoke on condition of anonymity because the information has not yet been publicly announced.
Myanmar has a long history of drug production linked to political and economic insecurity caused by decades of armed conflict. It has been a major source of illegal drugs destined for East and Southeast Asia, despite repeated efforts to crack down.
That has led the flow of drugs to surge “across not only East and Southeast Asia, but also increasingly into South Asia, in particular Northeast India,” the UN said last month. Drugs are increasingly trafficked from Myanmar to Cambodia, mostly through Laos, as well as through maritime routes linking Malaysia, Indonesia, and the Philippines, with Sabah in Malaysia serving as a key transit hub, it added.
The UN agency labeled Myanmar in 2023 as the world’s largest opium producer.


Indonesia launches first medical tourism special economic zone in Bali

Updated 26 June 2025
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Indonesia launches first medical tourism special economic zone in Bali

  • Sanur medical tourism zone will include international hospital, specialist clinics, research centers
  • Initiative also aims to stem high number of Indonesians who annually seek health treatment overseas

JAKARTA: Indonesia has launched its first medical tourism special economic zone in Sanur, on the resort island of Bali, marking a major step in the country’s efforts to develop world-class healthcare services integrated with tourism.

In recent years Indonesia has been working to reform its healthcare sector to improve service standards and reduce the outflow of Indonesians seeking treatment overseas, including in Singapore, Malaysia and Thailand, who spend up to 150 trillion rupiahs ($9.2 billion) abroad annually.

The Sanur medical tourism zone will include a range of facilities, including an international hospital, specialist clinics, medical research centers and a garden with over 380 medicinal plant species.

“I think this is the first of its kind in our country — we envisioned creating a special economic zone offering world-class healthcare services,” President Prabowo Subianto, who inaugurated the project on Wednesday, said during his speech.

Indonesia, a country of more than 270 million people, has about seven doctors for every 10,000 people, according to World Health Organization data. This is below Thailand with nine doctors, the Philippines with eight doctors and Australia with 41 doctors per 10,000.

To transform healthcare in the country, Indonesian lawmakers passed into law a health bill last year that allows foreign medical specialists to practice and be based in the country.

The Sanur medical tourism zone is also part of the government’s efforts “to provide the best healthcare services to all of its citizens,” Prabowo said.

“There are many Indonesian citizens who seek healthcare abroad, which affects our foreign exchange reserves. With this initiative, we can provide healthcare services that are on par with the best in the world.”

Indonesian officials hope the new special economic zone will not only boost the country’s health sector, but put Bali on the global map as a top destination for health and wellness tourism.

As the country’s top overall tourist destination, Bali welcomed 6.3 million international travelers in 2024.

The idea to develop a special zone dedicated to world-class healthcare does have the potential to effectively stem the number of Indonesians seeking medical services abroad, said Kharisma Utari, a researcher with Women’s World Banking.

“But I think we need to remember that quality healthcare cannot be solely developed from one hub. If this stands alone without improving the entire healthcare system nationally, there is a risk of this turning into a gimmick or a mere symbol,” Utari told Arab News on Thursday.

“Quality healthcare should be enjoyed evenly and inclusively across all regions, not just in one exclusive zone,” she added. “State budget should be directed to strengthen basic services that could reach all people.”