An Economic Analysis on Groundwater in India

Abstract

The country India is one of the highest groundwater extracted country in the world. We generally use 25% out of all groundwater extracted countries, which is ahead of the US and China. The high level demand or need for groundwater implies the necessity of capability to fulfil that demand in an equitable and sustainable way. In- sufficiency of water resource is likely to deteriorate, compared to growth rate of population in near future period in our nation. To address the issue of healthy water scarcity, masses need to be conscious about water storage, water reuse and common practices to reduce water pollution. Proper valuation and pricing of groundwater is an essential tool to protect the groundwater in India. Dynamic decision on price of ground water involves to pricing the value of the vital resource ground water. Enormous extraction of the resource can shrink surface water flows and declining the quantity of water available for other uses. Strategic externality depends on behaviour of extractors of groundwater. We have got a significant relationship between irrigation intensity and cropping intensity. Yield of paddy significantly depends on water productivity. The food grain production can be increased by improved water productivity. Increased food grain supply can fulfil the domestic demand and contribute on G.D.P (i.e.,Gross domestic Product) of the nation. So that if we wish to gift healthy Nation to our future generation we have to think how to maintain the healthy groundwater.