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India

India at the brink of unrest as water crisis in still unresolved, hurt economic growth, Moody’s warns

New Delhi: Extreme weather conditions including heatwaves and drought have exacerbated the situation, placing the world’s most populous country in a dangerous spot, Moody’s said in a report and warned that water scarcity might impede the country’s sovereign credit health.

The Kashmir Media Service, The Moody, the international credit rating agency has a stable outlook on India’s Baa3 rating stated India relies substantially on monsoon rain for its water supply, but is also prone to severe and extreme weather conditions

Delhi, one of the world’s most densely populated cities with over 200 million people, is knee-deep in a water crisis.

“There are 2.8 million people in the city who are aching for just a drop of water,” Delhi Water Minister Atishi was quoted as saying on Monday, a day before she ended her hunger strike over the water crisis, as her health deteriorated.

This in turn can exacerbate volatility in India’s growth and undermine the economy’s ability to withstand shocks, given that more than 40% of the country’s workforce is employed in agriculture.

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