Water Scarcity Threatens to Dampen India's Economic Prospects
Moody's warns of water shortage's impact on India's economic growth, agriculture, and industry
Water ScarcityEconomic GrowthMoodys RatingsIndiaClimate ChangeReal Estate NewsJun 25, 2024
Decreases in water supply can disrupt agricultural production and industrial operations, resulting in inflation in food prices and declines in income for affected businesses and communities, while sparking social unrest. This, in turn, can exacerbate volatility in India's growth and undermine the economy's ability to withstand shocks.
India is facing a growing water shortage, driven by increasing water consumption amid rapid economic growth and increasingly frequent natural disasters due to climate change. The country's vast and rapidly growing economy, coupled with its large and expanding population, makes it a significant consumer of water.
Moody's expects India's economy to grow 6.5% in 2024, faster than all other G20 economies. However, the agency has cautioned that the country's economic prospects may be dampened by the looming water crisis.
Information
Moody's Corporation is a global credit rating agency that provides credit ratings and research to investors, helping them make informed investment decisions. The agency plays a critical role in the global financial system, providing an independent assessment of creditworthiness.
Moody's Corporation is a leading global provider of credit ratings, research, and risk analysis. The company's ratings and analysis help investors identify opportunities and mitigate risks, providing a framework for investors to make informed investment decisions.
Frequently Asked Questions
What is the impact of water scarcity on India's economy?
Water scarcity can disrupt agricultural production and industrial operations, leading to inflation in food prices and declines in income for affected businesses and communities, while sparking social unrest.
Why is India facing a growing water shortage?
India is facing a growing water shortage due to increasing water consumption amid rapid economic growth and increasingly frequent natural disasters due to climate change.
What is Moody's outlook on India's economic growth?
Moody's expects India's economy to grow 6.5% in 2024, faster than all other G20 economies.
What is the role of Moody's in the global financial system?
Moody's plays a critical role in the global financial system, providing an independent assessment of creditworthiness to investors, helping them make informed investment decisions.
What is the significance of credit ratings in the financial system?
Credit ratings provide an independent assessment of creditworthiness, helping investors identify opportunities and mitigate risks, and providing a framework for investors to make informed investment decisions.
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