India may become a water-scarce country by 2020 and the industry will face increased pressure to conserve water, said a study.
"Nearly 50 per cent of villages do not have any source of protected drinking water. Rapid population growth, coupled with mass industrialisation, expanding agriculture and urbanisation, has resulted in an increase in competing demands for water resources," said the study 'The Business Case for Water Disclosure in India said,' by global NGO CDP.
Quoting Water Resources Group India, it said India faces a looming water crisis where the demand is set to outstrip supply by 50 per cent by 2030. Governments are increasingly putting pressure on industries to adopt best international practices to improve water management, the report added.
Grundfos Pumps India has partnered with CDP to launch the report prepared by CDP and KPMG.
Grundfos India Managing Director Ranganath N K said: "Effective management of water resources and use is one of the most critical businesses and sustainability challenges of the 21st century. We hope that through this report we are able to help fuel the acceptance of water auditing and annual water reporting within corporate India."
The report says that that companies are increasingly aware of water-related risks but actions to manage water issues at a corporate level are inadequate.
CDP is an international, not-for-profit organisation. It claims that it works to transform the way the world does business to prevent dangerous climate change and protect natural resources.