Moody’s Ratings has highlighted India’s escalating water scarcity as a significant risk to the country’s sovereign credit health and key sectors like coal power and steel manufacturing. Rapid economic growth and climate-related challenges exacerbate water shortages, impacting agriculture, industry, and social stability. India’s per capita water availability is projected to decline further, potentially leading to inflation, reduced incomes, and social unrest. Moody’s emphasizes the critical role of investment in water management to mitigate long-term risks and suggests the sustainable finance market as a funding avenue.