Cities must see water as a strategic tool to balance economy, ecology

For too long, cities have treated water as either scenery or sewage — but never as strategy. The blue economy is a hopeful concept that integrates all three. The idea of the blue economy often gets us thinking about oceans, coastal ports, and fishing boats, while the cities of today evoke images of skyscrapers, traffic, and rooftop gardens. This binary, however, misses the fact that several Indian cities are inherently water-bound. With a coastline of roughly 7,500 km, India has major coastal cities like Chennai and Surat, riverine cities like Varanasi and Patna, and lake or wetland cities like Udaipur and Srinagar, to name a few. At least 35–40 Indian cities can be counted as significantly water-bound, many of which are among the country’s largest urban centres.

 

As India navigates through the complexities of sustainable development, the blue economy offers a compelling strategy to align urban development with social inclusion and environmental resilience. Water is intricately woven into the fabric of urban life — fostering trade, and supporting overall quality of life. Of late, however, unchecked urban growth is increasingly affecting vital water bodies. Rivers are choked with industrial effluent, lakes turned into dumping grounds, and wetlands drained for construction activities. Instead of seeing water bodies as “unproductive spaces” in an urban setting, the blue economy offers a promising solution — recognising the value of water bodies, whether a small lake or a large lagoon, as a vital living asset.

 

Globally, there is a growing interest in water-based urban development. Even cities like Kolkata, Chennai and Varanasi have integrated blue economy principles in practice, but without any formal labelling. For instance, Kochi in Kerala launched a water metro system in 2023, powered by electric boats, offering a clean and affordable transport system while easing road congestion and reducing emissions. Remarkably, the project was designed to support and enhance water quality around jetties, providing the additional benefit of improving the health of backwaters that sustain local fisheries and livelihoods.

 

Taken together, these efforts represent a smart blend of mobility, ecology, and economy. Chennai, similarly, has seen positive results by leveraging mangrove restoration to protect against coastal flooding. India can also look to global best practices — such as the development of Barcelona’s Olympic Port and the Port of Helsinki — which offer valuable examples of how blue economy strategies can rejuvenate underutilised waterfronts, transforming them into vibrant public spaces and hubs of innovation. These models, both within and outside India, demonstrate that economic activity and ecological balance can not only coexist but also thrive together. 

 

This window of transformation is especially critical at a time when a majority of Indian cities are facing an extreme water crisis — not just in terms of access, but also the quality of available water. In 2021, the Ministry of Housing and Urban Affairs released guidelines for river-centric urban planning, advocating for strict No Development Construction Zones (NDCZs), active floodplain restoration, and ecologically sensitive buffer zones.

 

These measures, if implemented with political will and community participation, can significantly reduce urban vulnerability while enhancing quality of life. To act on these principles, Indian cities should consider adopting both a territorial and whole-of-water approach to urban design. The territorial approach emphasises the unique geographic, socio-economic, and environmental conditions of each city or region, encouraging localised strategies that are more responsive and inclusive. Rather than a one-size-fits-all model, it supports tailored governance frameworks, multi-stakeholder collaboration, and coherent policies that bridge silos across water, urban planning, and economic sectors.

 

In tandem, the whole-of-water approach highlights the interconnectedness of freshwater and marine ecosystems, advocating integrated management of the entire water cycle — from headwaters to coasts. This perspective is crucial for Indian cities where upstream pollution and unplanned development directly affect downstream health, resilience, and livelihoods.

 

Yet the blue economy is not just about infrastructure or regulation — it is equally about people. Cities must become stewards of their water bodies, which requires public awareness, civic participation, and community ownership. Initiatives such as riverfront ecotourism, citizen science, and blue-tech entrepreneurship can help reconnect communities with their rivers, fostering a culture of care and innovation.

 

The case of Rotterdam’s BlueCity — a former swimming pool transformed into a circular economy hub — demonstrates the social and creative potential of river-based redevelopment. Harnessing the blue economy is therefore not just another development fad but a practical framework that places water at the heart of how cities think, plan and grow. For Indian cities stretched thin by water scarcity, urban sprawl, and economic inequality, this is less about grand ambition and more about smart, systems-level problem solving. The message is simple: We can’t afford to treat rivers as backdoors and coastlines as afterthoughts. In the end, building blue might just be the best way to stay afloat. 

The author is chair, Institute for Competitiveness. X: @kautiliya. With inputs from Meenakshi Ajith