Water Demand and Utilisation

India’s water demand is shaped by its traditional dependence on agriculture. For decades, about two-thirds of the population relied on farming, so increasing irrigation became a top priority in the Five Year Plans. This led to large multipurpose river valley projects — Bhakra-Nangal, Hirakud, Damodar Valley, Nagarjuna Sagar, and the Indira Gandhi Canal Project — all aimed at boosting agricultural output.

Today, irrigation dominates India’s water use. Agriculture accounts for the overwhelming share of both surface water and groundwater utilisation — 89 per cent of surface water and 92 per cent of groundwater. In contrast, the industrial sector uses only 2 per cent of surface water and 5 per cent of groundwater. The domestic sector has a slightly larger share in surface water (9 per cent) than in groundwater.