In June 2026, Moody's Ratings assigned India as the highest level of water-management risk country, on its five-point environmental risk scale, citing its fragmented water governance, distorted water pricing, inadequate infrastructure and slow water reallocation. The agency warned that delayed investment in water infrastructure could weaken economic growth, industrial productivity and fiscal stability, with implications for both sovereign credit worthiness and bank lending portfolios. The warning implies that water risk is no longer an environmental concern sitting on the margins of a bank's balance sheet, it is becoming a mainstream financial risk
