Commodities like gold, silver and agri-products may be what most investors are watching out for. But there is another that is critical to watch out. One that may not risk our portfolio returns but certainly our survival. And the critical commodity is water. For most other consumables, the per capita availability has improved for Indians over the years. But in the case of water, the same has dropped by a drastic 70% over the past 60 years. What's more, it is expected to drop by a third in another 40 years! Yes, water currently may not enjoy the kind of conservation efforts that energy resources do. But as per a report by CRISIL, companies having a reckless approach to water usage are likely to risk their long term prospects. The growing scarcity and pollution of water, coupled with challenges arising out of clim ate change could pose serious risks to industrial and business operations in India. The companies that continue to have a cavalier approach towards use of water and waste water discharge have faced regulatory and reputational damages. This has had a significant impact on their financial performance as well. Thus consumers of this scarce commodity, whether retail or industrial should take its conservation more seriously.
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