According to Moody's, India's sovereign credit strength may be impacted by the worsening water problem.
India is strongly dependent on monsoon rains for its water supply, therefore any increase in the frequency, intensity, or length of extreme climate events resulting from climate change will exacerbate the situation, according to the global organization.
According to Moody's Ratings on Tuesday, India's increasing water scarcity—caused by high consumption combined with fast economic expansion and frequent natural disasters—could have a detrimental effect on the sovereign credit strength of the South Asian country.
Every summer, millions of Indians experience water shortages due to a shortage of water in homes, offices, and farms. This year's protracted heatwave has made the situation worse, especially in Delhi and Bengaluru, the country's southern tech hub.
Moody's Ratings stated in a note that "this is detrimental to the sovereign's credit health as well as sectors that heavily consume water, such as coal power generators and steel-makers."
What's Your Reaction?
