Navigating Waters

Introduction

Safe water and sanitation are vital to human life. However, despite global efforts, as of 2022, 2.2 billion people still lack access to safely managed water services, and 3.5 billion are without safely managed sanitation services, resulting in conflicts and threatening global governance. The United Nations predicts that global water demand will increase by 20–30 percent by 2050. The annual economic value of water and freshwater systems is already estimated to be $58 trillion, or approximately 60 percent of global GDP, and is under threat from the freshwater ecosystem crisis. Climate change further exacerbates challenges for developing economies by causing floods, droughts, and extreme weather conditions, necessitating international and bilateral cooperation.

In India—an important strategic partner for the United States in terms of geopolitics, economic development, and international trade—long-term water security will be critical for national and human security, as well as economic development. However, water and sanitation fail to rank among the top bilateral priorities in the U.S.-India partnership, which should instead harness U.S. knowledge in areas of greatest impact for both countries while also capitalizing on the opportunities presented by India’s rapid expansion in the water, sanitation, and hygiene (WASH) sector. The sector should be prioritized given the vast potential to expand trade, private investments, and greater collaborations from U.S. service providers, such as business and technology groups and industry associations.

According to the U.S. International Trade Administration (ITA), water and wastewater treatment is the largest environmental technology segment for U.S. exports to India, which has the fifth-largest water and wastewater market in the world, valued at $11 billion in 2024 and expected to grow to over $18 billion by 2026. This makes new technologies and innovation major areas of potential collaboration between the United States and India. In addition, India’s need for basic water and sanitation services will rise, especially in cities: In 2023, urban areas housed about 36 percent of India’s population, or 519 million people, a figure that is projected to increase to over 900 million by 2050, reflecting the largest urban growth globally. Despite public funds, India will require an additional $55 billion annually to meet urban demands, according to the World Bank. With only 2 percent of current global water investments currently coming from the private sector, there is ample opportunity for U.S. companies to leverage their financial capital and technical capacities to benefit India’s water and sanitation sector.

The United States should prioritize water issues to demonstrate foreign policy leadership and promote market development for its firms. A strong U.S.-India partnership would not only improve India’s access to clean water but could also provide the United States a market for its technologies and technical expertise. Such opportunities would also expand trade between the two countries. The new U.S. administration should handle global water and sanitation challenges strategically since they are critical to national security, public health, and economic development.

The consequences of recent changes in foreign development assistance and announcements about closing the U.S. Agency for International Development (USAID) will become clearer in the coming months. However, U.S. government resources available for development aid are expected to be considerably reduced. Despite a significant shift in the foreign assistance landscape, U.S.-India WASH cooperation warrants attention given the bilateral benefits it can yield. If discontinued, some of these areas of past U.S. government engagement could be taken up by private philanthropy.

This white paper analyzes the U.S.-India partnership on water and sanitation issues. It reviews the United States’ current Global Water Strategy (GWS), its water-related foreign assistance agenda, and India’s current water and sanitation objectives.¹ It outlines a future pathway for bilateral engagement on water sustainability, considering India’s recent progress on UN Sustainable Development Goal (SDG) 6 of clean water and sanitation for all. Drawing insights from desk research and expert conversations, this white paper aims to present an informed perspective and identify areas for strengthening U.S.-India collaboration. Such efforts could mobilize resources, technologies, innovation, capacity, and capital to help India achieve long-term water security and environmental sustainability—while providing the United States an important market for strategic alliances, new capital, and leveraging human capabilities. A focused framework spanning segments, partners, and programs is required to achieve water security for India and open market opportunities for the United States. The opportunity could yield real benefits for economic growth, job creation, manufacturing, and innovation, as well as expanded collaborations for both countries. 

The State of India’s Water Security

India has 4 percent of the global water supply but 18 percent of the world’s population, making it extremely water stressed. The country’s expanding population, urbanization, and economic growth, as well as the exacerbating effects of climate change, make water security a primary issue for India, as indicated by the government’s increased spending across various national programs.

Through India’s national schemes and missions, trillions of dollars’ worth of public funds have been allocated to develop water, sanitation, and urban development infrastructure. Over the past decade, India has progressed toward SDG 6 by increasing tap water connections and safe sanitation facilities. To achieve long-term goals, future challenges include maintaining said infrastructure, recovering operational costs, and preventing leakages.

The mandate for safe water and sanitation is shared across multiple ministries, departments, and organizations at the national and subnational levels, as outlined in Table 1.

Progress over the Past Decade

Over the past 10 years, India has exhibited strong leadership in the water and sanitation sector, with national programs prioritizing this agenda. These programs funded infrastructure development through a “mission mode,” resulting in objective-oriented programs that aim to provide safe water and sanitation to every home. Table 2 summarizes the various national programs, their priorities, and funding allocations.

Furthermore, programs such as the National Urban Livelihood Mission and Smart Cities Mission aim to address job creation and upskilling in the WASH sector.

Results Achieved

India’s most remarkable achievement has been the reduction of open defecation, with the national sanitation mission providing safe toilets to over 450 million people. Sustained toilet usage is crucial for attaining SDG 6, as are measures to ensure water is safely transported, treated, and reused—which both creates a circular economy and improves water security.

Since 2014, the Swachh Bharat Mission (SBM)–Rural has facilitated the construction of over 117 million toilets. SBM–Urban has constructed 6.3 million individual toilets—as well as nearly 700,000 community and public toilets—and implemented scientific solid waste management practices across India. SBM 2.0 aims to make all cities garbage free, water secure, and capable of safely managing gray and black water. Studies indicate that SBM has considerably reduced infant and under-five mortality rates in India, saving 60,000–70,000 lives per year. Meanwhile, the Jal Jeevan Mission (JJM) has provided 122 million tap water connections since 2019, more than quadrupling the share of rural households with tap water (see Figure 1).

India’s Water and Wastewater Treatment: Market and Challenges

According to the ITA, water and wastewater treatment is the largest environmental technology segment for U.S. exports to India. India has the fifth-largest water and wastewater market in the world, valued at $11 billion in 2024 and expected to reach $18 billion by 2026. This presents excellent opportunities for U.S. companies and innovators.

New technology has been identified as a major area of collaboration between the United States and India, as underscored by the ITA and USAID in USAID’s India High-Priority Country Plan, part of the Biden administration’s Global Water Strategy. However—in addition to the Trump administration’s cessation of funding for USAID—several challenges for U.S. exporters persist, including high tariffs, intellectual property issues, an unpredictable regulatory and policy landscape, and market price sensitivity.

The Role of Development Finance Institutions

Development finance institutions such as the World Bank, the Asian Development Bank, and UN programs and specialized agencies—as well as several national development finance institutions—have played key roles in supporting India’s water and sanitation needs through technical assistance and project funding.

As of 2025, the World Bank has mobilized $2.9 billion across 24 WASH projects in India, focusing on river basin management, sustainable water delivery, and climate resilience. For example, one of its largest projects was a $300 million plan in 2023 to upgrade Tamil Nadu’s water delivery systems, ensuring the quality and efficiency of water supply and sewerage services.

The Asian Development Bank supports and finances improvements to WASH infrastructure and services, facilitates upstream policy dialogue, and strengthens institutions and regulations. The Asian Development Bank’s Water Organizations Partnerships for Resilience program, for example, pairs local water management utility companies to help transfer knowledge, skills, and processes. In one such partnership, Singapore’s Public Utilities Board collaborated with the Chennai Metropolitan Water Supply and Sewerage Board on energy efficient desalination plants.

The United Nations Children’s Fund (UNICEF) and the UN Development Program (UNDP) have also supported programs on water and sanitation in India. UNICEF has been an active development partner for the federal government of India, providing direct support for the Jal Jeevan Mission, and has implemented community-based solutions with the help of rural governance bodies. The UNDP focuses on water access, security, and quality; its projects empower rural residents and enable local water governance through community-based water conservation practices.

The French Development Agency has also been collaborating with Indian state and municipal governments since 2012 to create sustainable and accessible water systems. The French Development Agency’s engagements with the municipal governments of Jodhpur and Puducherry highlight its commitment to regional engagement and sustainable solutions, for example through energy efficiency measures, leakage reduction, and tariffs rationalization to encourage more prudent water usage.

In addition, the German Agency for International Cooperation has facilitated projects focused on water security, river basin rejuvenation, and fecal sludge management in cooperation with two national ministries in four Indian states. Similarly, Germany’s KfW Development Bank has mobilized large-scale funding for numerous projects covering rainwater management, desalination, and sewerage infrastructure. In 2022, KfW contributed over $500 million to facilitate climate-resilient infrastructure and improve municipal water services in Tamil Nadu through the Tamil Nadu Urban Development Fund. 
 

U.S. Global Water Strategy and India

Evolution of U.S. Foreign Assistance in the Water, Sanitation, and Hygiene Sectors

The Senator Paul Simon Water for the Poor Act of 2005 was among the first U.S. laws to make safe water and sanitation a goal of foreign assistance, emphasizing innovative international mechanisms based on best practices from other development sectors and calling for increased U.S. development assistance. The act amended the Foreign Assistance Act of 1961 to authorize aid for water and sanitation programs in developing countries, recognizing that global cooperation on river basins, aquifers, and other watersheds is essential for U.S. national security.

Between 2008 and 2013, key developments included the creation of a joint framework between USAID and the U.S. Department of State for foreign assistance in the water sector, the appointment of the first Global Water Coordinator by the USAID administrator, and the announcement of USAID’s first five-year Water and Development Strategy, which aimed to improve health outcomes through sustainable WASH services development and enhance food security through better agricultural water management.

The Senator Paul Simon Water for the World Act of 2014, built on the 2005 act, prioritized water and sanitation as critical for human life. It underscored U.S. leadership in ensuring sustained access to clean water and sanitation for vulnerable communities, making the secretary of state (or an appointed designee) the new special advisor for water resources. The act expanded USAID’s program to high-priority countries (as defined by share of a country’s population with limited access to clean drinking water or sanitation sources, the number of children under five years of age who died from diarrheal disease, and the government’s capacity and commitment to work with the United States to improve WASH services). It also highlighted the necessity for a government-wide global water strategy (GWS).

Under the GWS, first issued in 2017, U.S. assistance for a water-secure world was guided by four interconnected objectives: increasing access to safe WASH services, sound management and protection of freshwater resources, cooperation on shared waters, and strengthening governance and financial systems. Over 17 U.S. government agencies and departments helped execute this strategy, coordinated by the Interagency Water Working Group and implemented by U.S. diplomatic missions.

In 2022, the U.S. government outlined the vision of a water secure world in the White House Action Plan on Global Water Security, recognizing global water access as an essential element of U.S. national security. The action plan introduced an innovative, whole-of-government approach that would be implemented through the GWS to address direct and indirect consequences of water insecurity. However, through a presidential executive order in January 2025, the development assistance agency, USAID, and programs have been paused, and the future of development aid is unknown.

The 2022 Global Water Strategy

The 2022 version of the GWS aimed to implement a five-year strategic action plan. The U.S. government proposed to work through four interconnected and mutually reinforcing strategic objectives: strengthening WASH institutions, increasing access, improving water resource management, and reducing water-related conflict (see Figure 4).

The U.S. government contributed by deploying tools and resources such as foreign assistance, diplomatic engagement, technical assistance, and investments. The strategy was operationalized through U.S. missions in partner countries and the Interagency Water Working Group, which collaborated monthly with the participating departments. The 2022 GWS continued the multidepartment approach of the 2017 version, bringing in—among other agencies and organizations—USAID, the Department of State, the ITA, the U.S. International Development Finance Corporation (DFC), the Environmental Protection Agency, the Centers for Disease Control and Prevention, the Millennium Challenge Corporation, and the U.S. Trade and Development Agency. In particular, the Millennium Challenge Corporation has invested over $2.2 billion globally in clean water, sanitation, and natural resource projects since its formation in 2004. It selects eligible countries based on available funds, needs, and the country’s commitment to democracy and economic freedom. However, it presently does not have any direct investments in India.

In addition, nongovernmental organizations (NGOs) and independent groups—including the American Water Works Association, Water Environment Federation, and American Society of Plumbing Engineers—have actively advanced capacity building and knowledge exchanges in the sector.

The U.S. Government’s India-Focused Interventions

In early 1990s, the U.S. government supported the Financial Institution Reform and Expansion–Debt and Infrastructure Project (FIRE-D) in India, working with the country’s central, state, and city governments to develop sustainable urban environmental services and ensure accessibility among underserved communities. The program included technical support at the national level and in 15 Indian states for municipal reforms, system strengthening, and expansion of WASH services.

In the years that followed, the United States provided project-based assistance on water and sanitation services, financing, climate resilience, and menstrual hygiene. During fiscal year (FY) 2017, the U.S. government identified 13 high-priority countries—including Afghanistan, Ethiopia, and Indonesia—based on the level of need, commitment to working with the United States, and opportunities to leverage U.S. private sector and donor partners. While India was not initially listed, Washington did align its strategy with its India missions and executed programs in India through USAID. As of 2018, India has been included as a high-priority country according to these criteria. Until USAID operations were suspended on January 20, 2025, the agency focused on expanding safely managed drinking water and sanitation services, improving water resource management, and making service delivery and water resources more resilient to climate stressors through programs such as Support for Water and Sanitation in India, Skill Development in Fecal Sludge and Septage Management, and the Water, Sanitation, and Hygiene Finance 2 (WASH-FIN 2) project.

In July 2024, Washington and Delhi signed a statement of intent to establish the Gandhi-King Development Foundation, first proposed under the Gandhi-King Scholarly Exchange Initiative Gandhi-King Scholarly Exchange Initiative Act passed by the U.S. Congress in 2020. The foundation is expected to focus on India’s priorities to address pollution, tackle climate change, and sustain WASH services.

Key U.S. government agencies engaging in WASH-related activities in India include the Department of State, DFC, and ITA (see Table 3).

Other departments and agencies have also played a role in supporting the WASH sector in India. In 2019, the U.S. Geological Survey signed a scientific and technical cooperation memorandum of understanding (MoU) with India’s MoJS and DoWR, RD & GR to share water resource expertise. However, follow-up actions and activities under the MoU have been delayed. Similarly, since June 2024 the National Science Foundation has supported research on the interaction between climate change, food security, water security, and health in India. In addition, the U.S. Department of the Treasury has engaged with cities in India to issue municipal bonds for urban projects, many of which focus on water supply and sewer infrastructure. In 2017, Pune became the first city to utilize these municipal bonds, ultimately raising 2 billion rupees ($23 million) for water supply projects with the help of technical know-how from the Department of the Treasury, which has planned to expand its cooperation to six more cities.
 

India’s Cooperation with Non-U.S. Partners

India has collaborated with several countries and international actors to advance the water and sanitation sector, resulting in the formation of strategic action plans on water, access to development financing, and participation in joint forums with country leaders and ministries. Initiatives include information sharing and capacity building programs, as well as private sector investment.

The European Union

The India-EU Water Partnership (IEWP) was created in 2016 to enhance cooperation on mutual water interests following the first Indo-European Water Forum in 2015. It aims to strengthen technological and scientific capacities in India and foster business opportunities for EU companies. While phases I and II of the IEWP engaged in river basin management and the reuse of treated wastewater, phase III focuses on public-private partnerships in pursuit of priorities outlined in India’s Vision 2030 and the European Union’s Global Gateway strategy. The IEWP has hosted six Indo-European Water Forums as of 2024, enabling projects and technical assistance in sustainable river basin management and rejuvenation, groundwater use, wastewater reuse, capacity building, and research and technology innovations. As part of phase III, the partners have committed a combined $38.5 million across seven projects to be implemented in coming years. The IEWP has been among the most extensive and comprehensive of India’s partnerships, enabling strategic planning with the MoJS and sponsoring numerous water-related bilateral relationships, including with the Netherlands and Denmark.

The Netherlands

India and the Netherlands have collaborated on water management for over a decade. In 2013, the two countries established a joint working group on mutual water-related concerns and enabling public-private partnerships, which was extended in 2017 for five years. The relationship strengthened in 2021 with the launch of the Strategic Partnership on Water, a collaboration between the Netherlands’ Ministry of Infrastructure and Water Management and the MoJS. Both countries combined policy expertise and resources, enhancing cooperation between government agencies, universities, knowledge institutes, and the private sector. A key example is the tripartite public-private partnership between Stahl (a Dutch chemicals group), Solidaridad (a Netherlands-based global NGO), and the Uttar Pradesh government to introduce novel and environmentally conscious techniques to the state’s prominent tanning industry. The project focused on capacity building for processes that reduced effluent discharge into the Ganges and increased operational efficiency—further raising competitiveness and accelerating adoption of these practices. The partnership has also facilitated investment projects and technical assistance in six Indian states and four municipal corporations for river basin management, water body pollution, flood management, and urban water access.

Japan

India and Japan have forged a strong partnership in water, wastewater, and sanitation through several MoUs between the MoJS and Japan’s Ministry of Land, Infrastructure, Transport, and Tourism. The 2019 MoU focused on flood and stormwater management, leveraging Japan’s advanced technologies to conduct joint feasibility studies and pilot projects in flood-prone regions of India. The 2021 MoU emphasized sustainable irrigation and water resource management, promoting integrated water practices. Finally, the 2022 MoU focused on decentralized wastewater systems, introducing Japan’s Johkasou technology into rural and semi-rural areas. JICA has also supported key initiatives such as the Bengaluru Water Supply and Sewerage Project, which improved or expanded 400,000 household connections, covering 60 percent of all household connections in the city. The agency has also mobilized over $3 billion in development financing toward the water and sanitation sector in India. Through these initiatives, JICA has improved water access for 30 million people in India and sanitation for 15 million, all while greatly strengthening the institutional management of water in India.

Israel

India and Israel have a longstanding partnership in water management. Key agreements include a 2012 joint declaration on water technology collaboration and a 2016 MoU to establish the Joint Working Group on Water, which oversees infrastructure projects, pilot studies, and commercial demonstration centers. Israel continues to collaborate with the MoJS, state governments, and municipal authorities, including those of Uttar Pradesh, Punjab, and Haryana, on water and sanitation issues, focusing on development aid, technical assistance, and public-private partnerships. At least 12 projects have been signed between Israeli corporations and Indian state and municipal governments and Indian corporations, many valued over $50 million, including the Tahal group project in Karnataka and the joint venture between Israel’s Watergreen and India’s SMV Jaipura Group. In addition, India and Israel are collaborating to establish two centers of water technology in Madras and Roorkee. While India and Israel lack a formal strategic framework for cooperation, they have most notably engaged the private sector to mobilize millions of dollars through multiple public-private ventures across India.

Denmark

In 2020, India and Denmark created the Green Strategic Partnership, under which the Danish Environmental Protection Agency has partnered with the MoJS, with support from Arhaus University and the Danish water utility company VandCenter Syd. The partnership centers on water resource and drinking water management, leveraging Denmark’s expertise in capacity building and fostering research and private sector collaboration. Danish experts and water utility corporations have engaged with Indian states through webinars, field work, and site visits. One notable example is the establishment of the Smart Laboratory on Clean Rivers—a collaboration with the MoJS, Indian Institute of Technology–Banaras Hindu University, and the government of Denmark—to foster “excellence in small river rejuvenation and management.” A second phase of the Green Strategic Partnership is expected to run from 2025 to 2027.

These partnerships in the WASH sector offer several lessons for expanding the U.S.-India relationship:

• Alignment with national priorities: Building a strategic framework requires aligning new initiatives with India’s existing missions and goals, ensuring coherence and complementarity. For instance, the IEWP engages directly with the MoJS, ensuring a more sustainable framework for tackling India’s water challenges. This includes multistate engagement for integrated river management.
• Engagement at the state and local levels: India’s decentralized governance allows for targeted partnerships and projects. Compared to short-term, project-focused engagements, long-term strategic partnerships with state governments can address broader challenges. The Indo-Dutch collaboration on water resource and river management was deepened through tailored state-level collaborations such as detailed strategies for flood risk management in Kerala and a comprehensive strategy for river basin resource management in West Bengal.
• Public-private partnerships (PPPs): Successful water and sanitation projects in India often involve collaboration with private institutions from partner nations. For instance, Israel has facilitated numerous business engagements in India, such as at the Nemmeli desalination plant, which introduced new technologies enabled by private sector expertise. The United States is home to leading companies and innovators in water utilities, water technologies, and wastewater management and can further promote partnership opportunities in India through government-led delegations, trade missions, and development finance support.
• A focus on innovation and technology exchange: India’s partnerships with other nations have thrived on integrating cutting-edge technologies. For example, the local treatment of urban sewage streams for healthy reuse (LOTUS-HR) program devised by the Indian and Dutch governments focuses on tailoring wastewater treatment strategies for urban areas. As part of this program, pilot facilities for testing novel treatment technologies were built in New Delhi in 2017. The United States could further enhance cooperation by integrating advanced technologies through joint research and development initiatives, innovation hubs, and knowledge transfer programs.
   

New Opportunities

The United States should deepen its strategic ties with India by aligning its capabilities, resources, and access to support water security and safe sanitation objectives. India is more than just a country partner for demand-driven technical assistance; it can also help expand strategic alliances and partnerships, drive innovation, deploy fresh capital, and foster knowledge exchanges. India’s future water and sanitation needs provide a substantial economic opportunity for the U.S. private sector and investors, making this a key topic for future bilateral dialogues.

The strategic priority for water, wastewater, and sanitation should be established through a focused, long-term framework that addresses national goals, emphasizes scalable subnational projects, and capitalizes on India’s sectoral strengths. A program-focused strategy will not be sufficient to help India accomplish its WASH goals and regional security objectives.

The United States should focus on several high-impact areas of cooperation that align with India’s requirements and are based on distinct propositions and capabilities, including through the following actions:

• Implement a track 1 WASH strategic partnership: Establishing a strategic partnership centered on WASH will enable the United States to take a whole-of-government approach and consolidate its actions in India. This would improve resource planning, encourage the exchange of innovative solutions, and mobilize more private sector–led models and capital. It would also support better management of long-term partnership goals between the United States and India, for example to revive the 2019 MoU covering scientific and technical cooperation on water efficiency and management.
• Set up a center of excellence on water in India: Such a center would facilitate the strategic partnership at the subnational level, emphasizing sustainable regional plans as opposed to project-based engagements and enhancing an integrated approach to water resource management. This platform could foster collaboration on areas such as governance, technology, and capacity building, ensuring actors work closely with state-level authorities, the private sector, associations, experts, researchers, and academia to enhance regional cooperation as they pursue India’s national priorities. This platform would also deepen engagements with think tanks, NGOs, and civil society organizations to inform policy action and industry engagements.
• Establish a collaborative development fund for WASH in India: This bilaterally financed fund—with the help of additional private sector capital—should promote the development of innovative technology pilots. Such pilots would increase suitable local technology demonstrations, help analysts explore the financial viability of their models, and incorporate lessons learned in the United States and other global markets. The collaborative fund would provide India-specific approaches to unlocking private sector investment and developing market-based solutions.
• Explore water-energy interdependencies: The water-energy nexus will be crucial in the future, particularly with growing demand from data centers, artificial intelligence (AI), solar farms, green hydrogen, and critical minerals. The U.S.-India partnership should invest in this emerging field since it could change water consumption patterns in the future and pose a major threat to water security. The respective governments could mitigate these risks by facilitating policy dialogues, fostering private sector innovation, and conducting technology and knowledge exchanges.

Conclusion

Comprehensive and concentrated cooperation between the United States and India has the potential to lead to long-term water security, which is critical for India and the region—especially since it will experience extreme water stress due to climate change and rising demand. As India is a rapidly expanding market for new technologies, capacities, and financing, coordinated action in the WASH sector can mutually benefit both countries. The partnership could establish a forum for sharing resources, facilitating private sector participation, and developing innovation and knowledge platforms. To support India’s water security, the United States should identify a strategic approach that leverages its technological advancements and solutions in a way that not only ensures water security in India but also enhances bilateral trade and market opportunities for U.S. firms.

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Bhawna Prakash is a senior fellow with the Chair on India and Emerging Asia Economics at the Center for Strategic and International Studies (CSIS) in Washington, D.C. Abhinav Subramaniam is a program coordinator and research assistant for the Chair on India and Emerging Asia Economics at CSIS.

This report is made possible by general support to CSIS. No direct sponsorship contributed to this report.