India’s Urban Challenge: Toward Resilient, Efficient and Inclusive Water–Waste Services

India’s urban water, sanitation, and waste systems have expanded rapidly but continue to suffer from unreliable service quality, weak financial sustainability, and fragmented governance, according to the World Bank Group and Asian Development Bank’s assessment. The report urges a shift from infrastructure creation to professionalized, financially viable, and citizen-focused service delivery to meet the ambitions of Viksit Bharat 2047.

India’s urban future, as described by the World Bank Group and the Asian Development Bank, hinges not only on expanding infrastructure but on transforming the quality, sustainability, and financial viability of water supply, sanitation, and solid waste management systems. Their extensive review of 100 major cities shows a country that has poured billions of rupees into pipelines, treatment plants, and collection systems, yet still struggles with unreliable water supply, inadequate sewage connections, and rising waste volumes. As India aims for Viksit Bharat 2047, the report argues that urban systems must evolve from construction-focused schemes to service-oriented, professionally managed, and bankable utilities capable of attracting private capital and delivering consistent results.

Infrastructure Built, Services Lagging

Water supply systems have expanded impressively, with many cities achieving high household connection rates and some meeting treatment capacity needs. But service quality remains inconsistent: most cities supply water for only a few hours per day, nonrevenue water often surpasses 40 percent, and metering is either partial or absent. Testing is largely confined to treatment plants rather than consumer taps. Sewerage networks remain incomplete and treatment facilities underutilized, reflecting weak planning and limited household connections. Wastewater reuse, though growing in pockets, averages only 19 percent across the ten intensively studied cities. Solid waste management shows similar contradictions. Door-to-door collection is widespread, and dumpsite remediation is underway, yet segregation at source fluctuates sharply from city to city. Processing capacity falls short of demand, and many local authorities remain reliant on outdated disposal practices despite national mandates for resource recovery.

The Governance Gap

The report identifies institutional fragmentation as a core barrier to progress. Urban local bodies often lack autonomy, ring-fenced accounts, modern billing systems, and the technical or managerial capability to operate as true utilities. Cost recovery is weak: the average city recovers only 72 percent of its O&M costs, far below the 120 percent benchmark needed for long-term sustainability. Tariffs remain politically sensitive and typically too low to cover even basic expenses. Billing and collection efficiencies vary widely, while the limited use of volumetric tariffs and universal metering undermines both equity and revenue generation. Electricity frequently consumes over half of operating budgets, pointing to vast opportunities for efficiency improvements. Without reforms in governance, financial transparency, and regulatory consistency, the document warns, cities cannot credibly access commercial finance or structure bankable public-private partnerships.

Cities That Shine, and Those That Struggle

The ten-city diagnostic brings the disparities vividly to life. Surat and Indore illustrate how strong governance, rigorous metering, and data-driven operations can produce high service quality, efficient waste management, and better cost recovery. Navi Mumbai also demonstrates professionalized practice with strong reuse and operational performance. In contrast, cities such as Ludhiana and Raipur contend with intermittent supply, low metering, and significant financial gaps. Supply duration across the ten cities ranges from near-continuous to barely two hours daily. Wastewater reuse spans from zero in some cities to 50 percent in others, while solid waste segregation ranges from complete to non-existent. Education and citizen engagement show similar inconsistencies, though cities that prioritize school-based awareness programs tend to perform better over time. The differences underscore how leadership, institutional design, and local capacity shape outcomes far more than geographic or economic conditions alone.

A Roadmap for Future-Ready Urban Services

Drawing on global and Indian exemplars, the report sets out a roadmap for creating financially stable, citizen-responsive, and climate-resilient utilities. Karnataka’s 24×7 water pilots reveal how universal metering, pro-poor connection policies, performance-based contracts, and robust state support can transform service quality. Shimla’s corporatized utility highlights the power of transparent accounting and autonomous operations. São Paulo’s SABESP demonstrates how strong regulation and disciplined financial management can make a water utility fully bankable, even attractive to stock market investors. These lessons converge on a single theme: professional institutions, not infrastructure alone, determine success.

For India’s cities, the report recommends shifting from grant-driven infrastructure expansion to results-based financing, revitalizing tariff policies, strengthening regulatory oversight, and building skilled, multidisciplinary teams within utilities. High-impact priorities include universal metering, nonrevenue water reduction, energy efficiency, wastewater reuse, and scalable waste processing. Long-term behavior change, particularly around segregation, conservation, tariff acceptance, and circular economy principles, must be nurtured through continuous public engagement. Ultimately, the document argues that India’s urban transformation will depend on whether cities can deliver reliable, transparent, and financially sustainable services capable of supporting the country’s economic aspirations.