India Zero Liquid Discharge Market Key Takeaways

• The India zero liquid discharge market stood at approximately USD 1.33 billion in 2025 and is projected to grow from USD 1.46 billion in 2026 to USD 2.52 billion by 2032.
• The industry is projected to witness steady growth at a CAGR of 9.5% during 2026–2032.
• By technology, thermal-based ZLD dominates the market, accounting for approximately 60% share.
• By capacity, plants with 500 KLD–1MLD capacity hold the leading position, capturing approximately 45% share.
• The industry is moderately fragmented, with the top five companies collectively account for approximately 43% of the market.

India Zero Liquid Discharge Market Size and Outlook

India's industrial wastewater management landscape is increasingly shaped by stricter discharge controls, water-reuse requirements, and efforts to reduce pollution in surface-water systems. The Central Pollution Control Board (CPCB) recorded 296 polluted river stretches in 2025, down from 351 in 2018, while the number of critically polluted stretches declined from 45 to 37 over the same period. Although these improvements indicate progress in water-quality management, they are also driving industries in high-pollution categories toward tighter effluent treatment, greater water recovery, and, where required, zero liquid discharge (ZLD) solutions.

The market is gaining further momentum from two structural opportunities. First, retrofitting of existing industrial facilities that continue to rely on conventional effluent treatment systems is creating demand for advanced ZLD solutions, particularly in pollution-intensive industrial clusters. Second, the development of new industrial parks and government-supported industrial infrastructure is increasing opportunities for centralized and common wastewater treatment systems incorporating ZLD capabilities.

Against this backdrop, the zero liquid discharge industry in India was valued at USD 1.33 billion in 2025 and is projected to reach USD 2.52 billion by 2032, registering a CAGR of 9.5% during the forecast period. Growth is expected to remain supported by regulatory compliance requirements, industrial water-reuse initiatives, brownfield ZLD retrofits, and increasing adoption of advanced wastewater treatment infrastructure in water-intensive industries.

India Zero Liquid Discharge Industry Key Indicators

• In July, 2024, the Central Pollution Control Board (CPCB) issued an SOP for verifying Zero Liquid Discharge compliance in distilleries. The procedure requires certified ZLD documentation as a prerequisite for ethanol distillation capacity assistance, strengthening regulatory enforcement and directly driving distilleries to adopt and maintain compliant ZLD treatment systems.
• India’s 2025 Dynamic Groundwater Resources Assessment reported groundwater extraction rates of 156.36% in Punjab, 147.11% in Rajasthan, and 136.75% in Haryana. These levels indicate severe resource stress, encouraging industries in these states to reduce freshwater dependence through wastewater recycling and reuse, thereby strengthening demand for zero liquid discharge systems.
• India generates approximately 72 billion liters of wastewater daily, while only about 28% is treated, according to CPCB-based analysis. This substantial treatment gap places greater responsibility on industrial facilities to manage wastewater onsite, strengthening demand for zero liquid discharge systems and reducing reliance on limited municipal treatment infrastructure.
• India’s Economic Survey 2025-26 projects data center capacity to exceed 4 GW by 2030, up from 1,280 MW in June 2025, while identifying water availability as a key constraint. This is increasing the need for water recycling and advanced treatment infrastructure, including ZLD systems, in new data center developments.

India Zero Liquid Discharge Market Scope

India Zero Liquid Discharge Market Growth Driver

Persistent Groundwater Extraction Pressure and Tightening Regulation of Industrial Water Abstraction Driving ZLD Adoption

India's growing groundwater stress, coupled with increasingly stringent regulations governing industrial water abstraction, is emerging as a key driver of the India zero liquid discharge market. According to the Central Ground Water Board's 2025 assessment, India's annual groundwater extraction stood at 247.22 BCM against an annually extractable resource of 407.75 BCM, resulting in a national Stage of Groundwater Extraction of 60.63%. The assessment also identified 730 of 6,762 groundwater assessment units (10.80%) as over-exploited, with many concentrated across north-western, western, and southern India, where major textile, chemical, pharmaceutical, and distillery manufacturing clusters are located. Consequently, industrial expansion in these regions increasingly depends on reducing freshwater withdrawal through water recycling and reuse.

The regulatory environment is reinforcing this transition. Industrial groundwater extraction is regulated nationwide by the Central Ground Water Authority, while the Ministry of Jal Shakti confirmed in December 2025 that consultations to revise the Ground Water Extraction Guidelines were underway following discussions with industrial and mining associations. Industries are therefore accelerating investments in advanced water recovery systems ahead of stricter compliance requirements. Reflecting this trend, SNF Flopam India commissioned an 800 KLD Zero Liquid Discharge facility at its Gujarat manufacturing plant in July 2026, enabling complete recycling of treated wastewater within its operations.

As a result, ZLD systems are increasingly integrated into new industrial projects from the design stage, driving demand for solutions that deliver high water recovery, regulatory compliance, and long-term operational efficiency.

Recent Trends

Design-Stage Integration of Zero Liquid Discharge Systems Across India's Semiconductor and Solar Manufacturing Expansion

India's rapid expansion of semiconductor and solar manufacturing is transforming the deployment model for zero liquid discharge systems. As compared to traditional industries, where ZLD was often installed to comply with environmental regulations after production facilities were operational, new high-technology manufacturing projects are integrating water recycling infrastructure during the plant design stage. Semiconductor fabrication, assembly, and solar cell manufacturing require large volumes of ultrapure water while generating complex wastewater streams, making high water recovery and Zero Liquid Discharge essential for operational continuity, regulatory compliance, and long-term water security.

This trend is particularly significant in manufacturing hubs such as Gujarat and Telangana, where industrial growth coincides with increasing pressure on freshwater resources.

The shift toward design-stage integration is evident in recent large-scale projects. In February 2026, Micron Technology inaugurated its USD 2.75 billion semiconductor assembly and test facility in Sanand, Gujarat, designed to meet or exceed LEED Gold standards while incorporating advanced water conservation technologies that enable Zero Liquid Discharge.

Similarly, VA Tech WABAG secured a USD 5.34 million contract from RenewSys India for the design, engineering, supply, installation, and commissioning of an integrated ultrapure water system, effluent treatment plant, and ZLD system for a 2 GW solar cell manufacturing facility in Hyderabad, to be executed over 11 months. The company described the project as its entry into water management for solar cell facilities alongside green hydrogen and semiconductors. Consequently, high-purity water generation and zero liquid discharge are increasingly being procured as a single integrated utility package, favouring suppliers capable of delivering both.

India Zero Liquid Discharge Market Opportunities and Challenges

High Capital Cost of Large-Scale ZLD Projects Creating Opportunities for Turnkey EPC Solutions

Despite increasing government support, the high capital requirement of large-scale zero liquid discharge (ZLD) systems continues to remain a major commercial challenge for industrial adoption in India. Under the Madhya Pradesh Industrial Promotion Policy 2025, industries installing ZLD systems are eligible for a 50% capital subsidy of up to USD 1.15 million, compared with USD 0.57 million for conventional effluent treatment systems.

However, industrial ZLD projects typically range from approximately USD 0.17 million for a 50 KLD system to over USD 11.5 million for installations exceeding 2 MLD, with crystallizers or Agitated Thin Film Dryers (ATFDs) significantly increasing project costs beyond reverse osmosis and evaporation infrastructure. Consequently, even after government incentives, industries must commit substantial capital, making ZLD investments strategic, board-level decisions rather than routine environmental compliance projects.

This commercial challenge is creating significant opportunities for integrated Engineering, Procurement, and Construction (EPC) providers capable of delivering complete turnkey ZLD solutions. VA Tech WABAG secured an approximately USD 39.08 million design-build-operate contract from GAIL (India) Limited for a 450 cum/hr UF- and RO-based effluent recycle plant integrated with an evaporator-based ZLD system at its Pata petrochemical complex. The project demonstrates that large industrial buyers are increasingly procuring ZLD as an integrated utility infrastructure package rather than as a standalone wastewater treatment system. As this procurement model gains wider adoption, demand is expected to grow for EPC companies capable of providing end-to-end design, engineering, construction, commissioning, and long-term operation and maintenance services, increasing both the value and scope of ZLD contracts in India.

Segmentation Insights

Thermal-Based ZLD Leads as the Preferred Technology with 60% share for High-TDS Effluent Treatment

Driven by its indispensable role in treating high-total dissolved solids (TDS) industrial effluents. Industries such as textile dyeing, distilleries, pulp & paper, chemicals, and tanneries generate wastewater with high salt concentrations that cannot be completely treated using membrane technologies alone. In textile manufacturing, reactive dyeing processes require substantial salt addition to fix dyes, resulting in effluent with TDS levels often exceeding 6,000 mg/L.

While membrane systems such as reverse osmosis recover a significant portion of water, they only concentrate the remaining dissolved salts. Thermal technologies, including Multiple Effect Evaporators (MEE) and Mechanical Vapor Recompression (MVR), perform the final evaporation and crystallization stages, enabling complete elimination of liquid discharge and compliance with stringent environmental regulations.

The growing adoption of thermal ZLD is extending beyond traditional industries into advanced manufacturing sectors. For instance, Ion Exchange (India) Limited secured approximately USD 11 million worth of ZLD work as part of Rayzon Energy's 5.1 GW solar photovoltaic manufacturing project in Gujarat during 2025. This reflects the increasing need for thermal ZLD systems in high-purity manufacturing industries, where stringent water reuse requirements and high-TDS process streams necessitate complete wastewater recovery.

The expansion of solar, electronics, and other advanced manufacturing industries is therefore broadening the application base of thermal ZLD systems and reinforcing their leadership in the Indian market. By technology the India zero liquid discharge industry is further segmented into the following sub-categories:

• Thermal-based ZLD
• Membrane-assisted ZLD
• Hybrid ZLD

500 KLD–1MLD Capacity Plants Capture 45% Share, Driving Large-Scale ZLD Adoption in India

Large-volume effluent generators, including refineries, petrochemical complexes, thermal power stations, and viscose staple fibre units, require continuous high-throughput evaporation and crystallization systems. The economies of scale associated with larger treatment capacities further support adoption across capital-intensive industrial facilities. According to a Ministry of Power reply to the Lok Sabha dated March 20, 2025, NTPC Limited maintains zero liquid discharge status across the majority of its thermal generating stations under its dedicated water conservation policy, highlighting continued deployment of large-scale ZLD systems.

Demand for high-capacity ZLD infrastructure is further demonstrated by Grasim Industries’ Nagda facility in Madhya Pradesh, where water usage increased from 5.66 billion litres to 36.8 billion litres as operations expanded. The facility subsequently commissioned a large-format ZLD system with Veolia, achieving 98% water recovery by April 2025. Additionally, the Government of Tamil Nadu sanctioned INR 703.29 crore for establishing 18 common effluent treatment plants with ZLD systems in the Tiruppur textile cluster. Existing common facilities in the cluster operate in the 3–11 MLD range, reinforcing demand for large-capacity ZLD infrastructure. By capacity the market is further segmented into the following sub-categories:

• <50 KLD
• 50–500 KLD
• 500 KLD–1 MLD
• 1–5 MLD
• >5 MLD

India Zero Liquid Discharge Market Competitive Landscape

The India ZLD market is moderately fragmented, with the top five players Thermax Limited, Ion Exchange (India) Limited, VA Tech WABAG Limited, Veolia Water Technologies, and Aquatech International, collectively accounting for an estimated 43% share of the market.

Major Companies in the India Zero Liquid Discharge Market

• Thermax Limited
• VA Tech WABAG Limited
• Ion Exchange (India) Limited
• Praj Industries Limited
• Concord Enviro Systems Limited
• Arvind Envisol Limited
• Aquatech Systems Asia Private Limited
• Larsen & Toubro Limited
• Triveni Engineering & Industries Limited
• Membrane Group India Private Limited

India Zero Liquid Discharge Market News and Recent Developments

2026: Spray Engineering Devices Partners with Gradiant India for a 340 KLD ZLD System at a Gujarat Solar Manufacturing Facility

Spray Engineering Devices (SED) partnered with Gradiant India to deploy a 340 KLD Zero Liquid Discharge (ZLD) system at a solar photovoltaic manufacturing facility in Gujarat. The project integrates SED's patented Low-Temperature Evaporation (LTE) technology with Gradiant's engineering, procurement, and construction (EPC) capabilities to treat wastewater containing up to 170,000 ppm TDS, achieving 94% water recovery and 78% salt recovery. The collaboration highlights increasing demand for advanced thermal ZLD technologies in high-purity manufacturing industries, while demonstrating how partnerships between domestic technology developers and global EPC firms are expanding the deployment of specialized ZLD solutions across India's rapidly growing industrial manufacturing sector.

Impact analysis: The partnership strengthens the adoption of advanced thermal ZLD technologies in high-TDS industrial applications, particularly within India's expanding solar manufacturing sector. It also demonstrates how collaborations between domestic technology providers and global EPC companies can accelerate technology commercialization, increase project execution capabilities, and expand the addressable market for high-performance ZLD systems.

2026: Membrane Group and Kurita Water Industries Establish Joint Venture for Ultrapure Water and ZLD Solutions

On July 2, 2026, Membrane Group India and Kurita Water Industries formed Kurita Membrane India Private Limited to serve India's semiconductor and advanced electronics manufacturing sector. The joint venture will provide ultrapure water systems, industrial wastewater treatment, wastewater reuse, Zero Liquid Discharge (ZLD) systems, resource recovery technologies, and water analysis services, supported by engineering, commissioning, and operations capabilities. It will also establish a dedicated Ultrapure Water Analysis Centre. The partnership strengthens integrated water management capabilities for semiconductor facilities, positioning the venture to capture growing demand for combined ultrapure water and ZLD solutions in India's expanding electronics manufacturing ecosystem.

Impact Analysis: The joint venture strengthens the supply of integrated ultrapure water and ZLD solutions for India's rapidly expanding semiconductor and electronics manufacturing sector. By combining Kurita's global water treatment expertise with Membrane Group's domestic execution capabilities, the partnership enhances competitiveness for large greenfield manufacturing projects while accelerating the adoption of advanced ZLD technologies. The establishment of a local Ultrapure Water Analysis Centre also improves technical support, shortens project qualification timelines, and creates recurring opportunities for long-term operations and maintenance services.

2025: Spray Engineering Devices Unveils MVR-Based Low-Temperature Evaporation Advances for Indian ZLD Applications

Spray Engineering Devices announced advances in its patented mechanical vapour recompression based low-temperature evaporation platform, positioning it for ZLD duty across textiles, chemicals, pharmaceuticals, breweries and distilleries. The company stated the systems achieve up to 99% clean water recovery at roughly a quarter of the cost of conventional steam-based evaporation, with energy consumption of 10–25 kilowatt-hours per cubic metre and by-products discharged as dry solids containing less than 10% moisture, enabling resale rather than hazardous disposal.

Impact Analysis: Energy intensity is the principal determinant of ZLD operating cost, and platforms cutting consumption toward the lower end of the evaporation range reset pricing dynamics for compliance-driven buyers previously deterred by lifetime cost. Saleable dry by-products convert a disposal liability into a revenue line, widening the population of mid-sized industrial adopters able to justify the capital outlay.

2026: Rochem Separation Systems Secures USD 1.68 million Zero Liquid Discharge Order from a Specialised Rail Engineering Manufacturer

Concord Enviro Systems disclosed that its wholly owned subsidiary, Rochem Separation Systems (India) Private Limited, received an order worth INR 16 crore on June 1, 2026 from a specialised rail engineering and manufacturing company. The contract covers design, fabrication, supply, transportation, installation, erection, testing and commissioning of an Effluent Treatment Plant, a Zero Liquid Discharge system, a Sewage Treatment Plant and a Water Treatment Plant, to be executed over a 28-week period. The disclosure was filed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, with the company confirming the domestic client falls outside related-party transaction scope.

Impact Analysis: The order extends zero liquid discharge adoption into rail manufacturing, a buyer segment not yet represented among the metals, refining and textile accounts that have historically driven ZLD demand in India. Bundling ETP, ZLD, STP and WTP scope into a single 28-week contract signals that integrated water management is being specified as one procurement package rather than sourced technology-by-technology, favouring suppliers with full-chain execution capability over vendors competing on a single treatment stage alone.