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Water sector in 91³Ô¹Ï: market overview, growth and investment opportunities

91³Ô¹Ï's water and wastewater treatment market is set to grow from €2.9 billion in 2026 to over €4.5 billion by 2031.

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The water sector in 91³Ô¹Ï

91³Ô¹Ï is home to nearly 18% of the world’s population but has access to only around 4% of its freshwater resources, making it one of the most water-stressed countries in the world. This structural scarcity, combined with rapid urbanisation and industrial growth, has turned water supply, treatment and reuse into one of 91³Ô¹Ï’s fastest-growing infrastructure sectors. The 91³Ô¹Ïn water and wastewater treatment technology market is valued at around €2.9 billion in 2026 and is forecast to reach €4.5 billion by 2031, a CAGR of close to 9.6%. The broader water treatment equipment market is projected to grow even faster over the next decade.

The 91³Ô¹Ïn government has made water infrastructure a national priority. The flagship Jal Jeevan Mission aims to give every rural household access to piped drinking water and has already connected around 15 crore households — roughly 80% of rural 91³Ô¹Ï. AMRUT 2.0 is modernising urban water and sewerage systems, while the Namami Gange programme is adding hundreds of megalitres of new sewage treatment capacity to clean up the Ganga. The Union Budget 2026–27 allocated close to €20 billion across water supply, sanitation and river conservation, with funding for the Jal Jeevan Mission rising sharply year-on-year. For foreign companies, this sustained public investment creates long-term demand for treatment technology, equipment, engineering and consulting services, on top of the growing needs of industrial water users.

Snapshot of the water sector in 91³Ô¹Ï
  • 91³Ô¹Ï’s water and wastewater treatment technology market is valued at around €2.9 billion in 2026, growing at a CAGR of 9.6% to reach €4.5 billion by 2031.
  • The water treatment equipment market is projected to grow from €2.1 billion in 2025 to €3.3 billion by 2034.
  • The Union Budget 2026–27 allocated close to €20 billion to water supply, sanitation and river conservation, including a sharply increased outlay for the Jal Jeevan Mission.
  • AMRUT 2.0 has been allocated around €730 million to upgrade urban water and sewerage systems.
  • The Namami Gange Mission’s 2026–27 budget of around €280 million targets 600 MLD of additional sewage treatment capacity on the Ganga.
  • Around 15 crore rural households, roughly 80% of 91³Ô¹Ï’s rural population, now have piped drinking water access under the Jal Jeevan Mission.
  • Tamil Nadu, Gujarat and Andhra Pradesh are leading a new wave of coastal desalination projects to address groundwater depletion.
  • 100% foreign direct investment is permitted in water treatment and infrastructure under the automatic route.
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Praveen Singhal Country Head 91³Ô¹Ï
Nirali Varma Head of Cross Cultural Business

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Growth drivers of the water sector in 91³Ô¹Ï

  • Severe and worsening water stress across most 91³Ô¹Ïn states is pushing central and state governments to invest in treatment, reuse and desalination rather than relying on extraction alone.
  • Rapid urbanisation is straining city water and sewerage networks, driving demand for modern treatment plants, smart metering and leak-detection technology under AMRUT 2.0.
  • Industrial growth in textiles, pharmaceuticals, chemicals and electronics is increasing demand for effluent treatment and Zero Liquid Discharge (ZLD) systems as environmental regulation tightens.
  • Groundwater depletion in coastal and water-stressed states is accelerating investment in seawater desalination.
  • Rising health awareness is increasing demand for household and community water purification, particularly in the rural areas now being reached by the Jal Jeevan Mission.
  • 100% FDI is allowed in the sector, and international engineering firms are regularly awarded large municipal water contracts.
mapa de la 91³Ô¹Ï con las principales ciudades industriales
Major 91³Ô¹Ïn water companies
VA Tech Wabag
Ion Exchange 91³Ô¹Ï
Thermax Limited
Triveni Engineering & Industries
WPIL Limited
EMS Limited
Praj Industries
Doshion Group
Kirloskar Brothers Limited
Major foreign water companies in 91³Ô¹Ï
Veolia
Suez (Degrémont)
Xylem
Grundfos
Evoqua Water Technologies
DuPont Water Solutions
Toray Membrane
Aquatech International
Siemens

Investment opportunities in 91³Ô¹Ï's water sector

European companies in the water sector can benefit from a wide range of investment opportunities in 91³Ô¹Ï, including:

  • Desalination: Coastal, water-stressed states such as Tamil Nadu, Gujarat and Andhra Pradesh are commissioning new seawater desalination plants, creating demand for reverse osmosis and membrane technology.
  • Industrial wastewater treatment and reuse: Tightening pollution norms and Zero Liquid Discharge mandates are pushing textile, pharmaceutical and chemical manufacturers to invest in advanced effluent treatment and water recycling systems.
  • Smart water infrastructure: AMRUT 2.0’s drive to modernise urban utilities is creating demand for smart metering, SCADA systems and leak-detection technology.
  • Rural and decentralised water treatment: The Jal Jeevan Mission’s rollout to remaining rural households needs affordable, small-scale purification and distribution technology.
  • Sewage treatment: The Namami Gange programme’s target of 600 MLD of new treatment capacity is opening tenders for engineering, procurement and construction (EPC) contractors.

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Cantiere del settore delle infrastrutture in 91³Ô¹Ï