Water is fundamental as there is no replacement for water. Entire industries, from agriculture industries to technology manufacturers everyday goods depended on it. The consequences of insufficient safe drinking water from higher child mortality and other health issues.
A recent study has revealed that most companies in India consider water scarcity as an increasing business risk factor. According to the research conducted by the US-based Colombia Water Centre in collaboration with the industry lobby FICCI, discovered that out of 27 major industrial sectors, 87% have responded that water scarcity would impact their business 10 years down the line. In the view of the public as well as that of the organization, the water scarcity crisis could directly impact the economy as well as the social instability.
TOP INDUSTRIES AT RISK BY WATER SCARCITY:
Not all businesses are prepared to deal with the water crisis. Now, some of the industries are threatened by the water crisis in India. The growing scarcity of freshwater affects the Indian economy, especially industries with high water usages such as food companies, energy firms, textiles, and technology manufacturers. India has 18% of the world population, having 4% of the world’s fresh water, out of which 80% is used in agriculture. In 2010, the irrigation sector was considered to be the highest water-consuming sector and it’s expected to remain the highest in 2025 and 2050. The industrial sectors that are affected by the water crisis are oil and gas, retail, pharmaceuticals, textiles, energy, information technology, and health services. This could lead to a huge reduction in their production and sales which lead to a severe impact on the stock market.
Top Industries and their corporations are on the front lines of water scarcity issues. The risks they face have outcomes from top to bottom lines based on their potential. Thus it is the responsibility of all individuals and organizations to work collaboratively preserving and minimizing water consumption.
IMPACT OF WATER SCARCITY ON STOCK MARKET:
The stock market is considered to be the boosting factor for better economic growth because it brings more profits to companies and also tends to improve the value of stocks. Top manufacturing industries, as well as agriculture sectors, use water as the main source to produce their outcomes. When the supply of water is minimized it will reflect on the production output. This will lead to many people selling their stock rather than buying stock. Thus, there would be greater supply than demand, and the price of the stock will also fall. This could bring a huge impact on the Indian share markets, as the stock value of many industries as well as agriculture sectors would be depreciated severely.
Last year, the Indian economy was severely affected by the COVID crisis. According to an article published by Business Today, it’s said that the GDP growth of India for the term April-June 2020 was depreciated to -23.9%. As the economic activities are restored after a long and strict lockdown, the Indian economy has strived back. Later, In the December quarter, the Indian economy has made its way out of recession with a GDP growth of 0.4%. Similarly, industries would have the same impact of COVID during the water crisis in India. Water scarcity can crash the stock market because of the reduction in the production of manufacturing and agriculture products. It can replicate huge changes in the Indian share market. Therefore, it is necessary that the government, organization, and public preserve and conserve the water for better economic growth as well as for our future generation.
Water is a scarce resource in India. As a result, the supply of water is less whereas the demand for water is high. Thinking wisely for a better investment in the stock market, investing in a water resource company can fetch you a better return in the future. The company’s stock value rises as there is demand in the market, since it’s water you can expect the demand. Make your future investment in water resources as it would yield huge returns in the future and also help in restoring the environment for our future.
HOW TO ENSURE PROPER WATER UTILISATION:
Several steps should be taken to minimize and reduce the use of water consumption in industries and companies as follows:
- Evaluate water metrics and conservation policies.
- Encourage water supervision.
- Monitor the water flow in all steps of the supply chain.
- Companies must ensure to follow relevant water supervision for their industry.
- Induce companies to ensure quality on their disclosure of water management.
Overcoming the water crisis is a necessity as it would influence the Indian economy, the stock market value of a company, and also the profit of the company. As an organization, takes the necessary steps of recycling the wastewater to conserve the water and also implements actions to supervise the better utilization of water without any loss. Hence, water scarcity can impact severely the Indian Economy as well as the Indian Share Market.
Save Water for a Better Future, Better Value & Better Economy!!