Home ／ Insights on entering the Indian market
2026.03.24
With a population of roughly 1.4 billion, India is the market where demand for water is surging fastest in the world. India's water treatment market was valued at $12.1 billion in 2024 and is projected to reach $40.9 billion by 2032 (a CAGR of 16.7%) (source: PS Market Research).
India accounts for 18% of the world's population but holds only 4% of its water resources. With accelerating urbanization and industrial development driven by economic growth, securing and managing water resources has become a critical national issue. While demand for agricultural water is high, emerging sectors such as the semiconductor industry also require large volumes of water, making the establishment of a sustainable water resource management system an urgent priority.
In the FY2025-26 budget, the Indian government raised the Jal Jeevan Mission's total budget to 670 billion rupees (₹67,000 crore, about $7.7 billion / about 1.1 trillion yen) and extended the mission itself through 2028. It promotes sustainable rural water supply and sanitation management (source: GlobeNewsWire).
In urban areas, AMRUT (Atal Mission for Rejuvenation and Urban Transformation) is driving the development of water supply and sewage infrastructure in more than 500 cities. This is an area where Japanese companies' advanced water treatment technology can be put to good use.
The household water purifier market is projected to grow from $2.54 billion in 2025 to $7.72 billion by 2032 (a CAGR of 17.2%) (source: Fortune Business Insights). RO (reverse osmosis) purifiers lead the market.
As water demand rises in manufacturing, IT, and food processing, investment in industrial water treatment and reuse systems is expanding. In particular, Bengaluru and Hyderabad IT hubs are seeing surging demand for water to cool data centers.
Rapid urban population growth makes expanding wastewater treatment capacity an urgent priority. Delhi, Mumbai, Chennai Major cities such as these have large-scale projects underway to improve water reuse rates.
Japanese companies hold world-class technology in areas such as membrane treatment, IoT water management systems, and energy-efficient water treatment plants. Because the Indian market demands both cost efficiency and high performance, it is important to develop a product lineup matched to local price ranges.
In India's water business, building relationships with local governments is essential. Local partners are the fastest way into tenders, and entering via a PPP (public-private partnership) model is also an effective strategy.
It is recommended to first build a track record in Noida and Gurugram and other industrial hubs, and then expand step by step into regional cities (Tier 2 cities). Ahmedabad and Kolkata and others are also promising markets.
Regulations for water-related businesses in India are complex, and licensing systems differ from state to state. Past failures are worth learning from, and being thorough in complying with legal regulations is essential. In addition, local hiring to secure technical staff is also key to success.
India's water treatment market is expected to expand at a high growth rate. With a large share of the world's population but limited water resources, structural demand underpins this market.
For rural areas, a large budget has been allocated to a major mission promoting water supply and sanitation, while in urban areas, water and sewage infrastructure is being developed across numerous cities. This is an area where Japanese companies' water treatment technology can be put to use.
The household water purifier market is expected to see strong growth, led by RO (reverse osmosis) purifiers. Demand is expected to keep expanding as the middle class grows.
As water demand rises in manufacturing, IT, and food processing, investment in industrial water treatment and reuse systems is expanding. Related demand is particularly rising in IT hubs such as Bengaluru and Hyderabad.
Japanese companies hold advanced technology in areas such as membrane treatment, IoT water management systems, and energy-efficient water treatment plants. Because the Indian market demands both cost efficiency and high performance, it is important to develop products matched to local price ranges.
Because building relationships with local governments is essential, entering through local partners to participate in tenders, or entering via a PPP (public-private partnership) model, is effective. A phased approach is recommended: build a track record in industrial hubs first, then expand into Tier 2 cities. Also keep in mind that licensing systems differ by state, so make sure your legal and regulatory compliance is solid before entering.
India's water resources market is supported by structural demand stemming from large-scale government investment and a serious water shortage, and it is one of the sectors expected to grow the most over the next decade. The advanced water treatment technology held by Japanese companies is a major competitive advantage in this market. India Market Build a strategic entry plan based on the latest trends in this market.
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