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This flagship report includes evidence on the economic impacts of current sanitation arrangements and hygiene practices in relation to the management of human excreta (and related hygiene practices), in both the rural and urban areas of India, based on an analysis of secondary data. It estimates the economic impacts of inadequate sanitation for health, access time and tourism amounts to INR 2.4 trillion ($53.8 billion)  in 2006. This implies a per capita annual loss of 'INR 2,180 ($48). In purchasing power parity (PPP) terms, the adverse economic impact of inadequate sanitation in India was $161 billion, or $144 per person. These economic impacts were the equivalent of about 6.4 percent of India's gross domestic product (GDP) in 2006.

The study estimates that a package of comprehensive sanitation and hygiene interventions, comprising greater use of toilets, improved hygiene practices, and improved access to water, could result in a potential gain of up to 'INR 1.48 trillion ($32.6 billion), avoiding up to 61 percent of the losses due to inadequate sanitation—or an equivalent of 3.9 percent of GDP in 2006. This signifies a potential gain of 'INR 1,321 ($29) per capita.

Furthermore the study calculates that the national cumulative sanitation market has the potential of INR 6.87 trillion ($152 billion) over the 2007-2020 period.
This is projected to consist of INR 4.4 trillion ($97 billion) or 64 percent in infrastructure work and INR 2.5 trillion ($54 billion) or 36 percent in O&M  (operations and maintenance) services. The annual sanitation market is estimated to grow from INR 300 billion ($6.6 billion) in 2007 to INR 683 billion
($15.1 billion) in 2020.

This report is organised into five chapters. The Introduction provides the rationale for the study and reviews the current sanitation situation and government initiatives in India. Chapter 2 provides a brief overview of the methodology used to calculate the economic impacts. Chapter 3 presents the results of the analysis. Chapter 4 summarises the estimates of the potential sanitation market. Chapter 5 provides conclusions and suggestions for further research. The Annexes present detailed methodology, additional data, and other supporting material for the report.

TitleEconomic impacts of inadequate sanitation in India
Publication TypeResearch Report
Year of Publication2011
AuthorsTyagi, A., Hutton, G.
Pagination128 p. :
Date Published01/2011
PublisherWater and Sanitation Program (WSP), World Bank
Place PublishedNew Delhi, India
Publication LanguageEnglish
Abstract

This flagship report includes evidence on the economic impacts of current sanitation arrangements and hygiene practices in relation to the management of human excreta (and related hygiene practices), in both the rural and urban areas of India, based on an analysis of secondary data. It estimates the economic impacts of inadequate sanitation for health, access time and tourism amounts to INR 2.4 trillion ($53.8 billion)  in 2006. This implies a per capita annual loss of 'INR 2,180 ($48). In purchasing power parity (PPP) terms, the adverse economic impact of inadequate sanitation in India was $161 billion, or $144 per person. These economic impacts were the equivalent of about 6.4 percent of India's gross domestic product (GDP) in 2006.

The study estimates that a package of comprehensive sanitation and hygiene interventions, comprising greater use of toilets, improved hygiene practices, and improved access to water, could result in a potential gain of up to 'INR 1.48 trillion ($32.6 billion), avoiding up to 61 percent of the losses due to inadequate sanitation—or an equivalent of 3.9 percent of GDP in 2006. This signifies a potential gain of 'INR 1,321 ($29) per capita.

Furthermore the study calculates that the national cumulative sanitation market has the potential of INR 6.87 trillion ($152 billion) over the 2007-2020 period.
This is projected to consist of INR 4.4 trillion ($97 billion) or 64 percent in infrastructure work and INR 2.5 trillion ($54 billion) or 36 percent in O&M  (operations and maintenance) services. The annual sanitation market is estimated to grow from INR 300 billion ($6.6 billion) in 2007 to INR 683 billion
($15.1 billion) in 2020.

This report is organised into five chapters. The Introduction provides the rationale for the study and reviews the current sanitation situation and government initiatives in India. Chapter 2 provides a brief overview of the methodology used to calculate the economic impacts. Chapter 3 presents the results of the analysis. Chapter 4 summarises the estimates of the potential sanitation market. Chapter 5 provides conclusions and suggestions for further research. The Annexes present detailed methodology, additional data, and other supporting material for the report.

URLhttp://documents.worldbank.org/curated/en/820131468041640929/Economic-impacts-of-inadequate-sanitation-in-India
Citation Key83970

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