New analysis outlines a USD 35-billion opportunity by 2047, backed by rising demand, regulatory reforms, and large-scale investment in reuse infrastructure

India could unlock an economic opportunity of nearly USD 35 billion by 2047 through large-scale reuse of treated used water, according to an independent assessment released by the Council on Energy, Environment and Water.

The study estimates that the sale of treated used water across industrial and irrigation markets could yield annual revenue of Rs 72,597 crore. It places the required national investment in treatment and distribution infrastructure between Rs 1.56 lakh crore and Rs 2.31 lakh crore by 2047. If these systems are built and operated at scale, India could reuse about 31,265 million cubic metres of treated water each year. This would provide a considerable share of the water needed for manufacturing and agriculture in the decades ahead.

At present, India treats roughly 28 per cent of the used water it generates. Most cities either lack reuse networks or do not channel treated water back into productive use. This gap is expected to narrow following the introduction of the Liquid Waste Management Rules 2024, which oblige bulk users to treat and reuse one-fifth of their wastewater, with the requirement rising to one-half by 2031.

The report, Financing for Treated Used Water Reuse in India, argues that stronger regulation and steady financing are essential to develop a functioning water reuse market. It notes that more than one lakh jobs could be created by 2047 in plant operations, construction, and associated technology services.

Shalu Agrawal, Director of Programmes at CEEW, said in a statement that used water must be viewed as an economic resource. The study calls for wider use of public–private partnerships, municipal green bonds, and shared industry investments. It also recommends market mechanisms such as Water Reuse Certificates, which would allow entities that surpass their reuse targets to trade credits with those that fall short.

Surat is cited as an early example of this model. Between 2014 and 2021, the city earned more than Rs 230 crore by supplying tertiary-treated water to industrial consumers. The report concludes that urban local bodies should play the central role in this shift by preparing long-term reuse plans and setting tariffs that support cost recovery while ensuring reliability for end-users.