Sustainable water management in India is fast becoming a necessity, with the looming crisis over water resources in the country threatening the security and livelihood of the population and the environment over the coming decades. Growing population pressures and increased development have led to higher pollution, over-exploitation and a degradation of the natural environment. Ineffective government policy and economic incentives have only encouraged the unsustainable use of water resources in the past few decades. Managing water resources will require a holistic approach that will address the pressures arising from various sources, including the agricultural, industrial and domestic sectors

In Indian, water demand will increase from 552 BCM to 1050 BCM by 2025. Of the total water usage, 92% is devoted to agriculture, 3% to industry & 5% to domestic use. In the country, per capita fresh water availability has dropped from 5000 M3/Yr. in 1947 to 2000 M3/Yr. in 1997. By 2025, this will further dropped to 1500 M3/Yr.

Already 6 out of 20 water basins fall below the water scarcity threshold limit of 1000 M3/Yr. and 5 more basins to be added in the next 3 decades.

Water availability & demand on the Indian subcontinent is strongly influenced by a number of climatic and geographic factors. Together these combine to provide India with enough freshwater to meet the various demands arising from the agricultural, industrial and domestic sectors. However, the actual distribution of water resources over space and time limits access to certain geographic regions and is confined to only certain months of the year. Government policies and economic incentives have also determined how and how much of India's water can be used.