Market Research Report

India Industrial Water Infrastructure Market Key Takeaways

• The India industrial water infrastructure market was valued at USD 3.12 billion in 2025 and is projected to grow from USD 3.39 billion in 2026 to USD 5.56 billion by 2032.
• The industry is projected to witness steady growth at a CAGR of 8.6% during 2026–2032.
• Industrial wastewater infrastructure remains the dominant infrastructure asset type, accounting for 34.2% of the market share in 2026.
• By equipment type, water treatment equipment leads the market with a 24.8% share in 2026.
• The market is highly fragmented, with the top five companies collectively accounting for a 19% market share in 2026.

India Industrial Water Infrastructure Market Size and Outlook

The industrial water infrastructure market in India is estimated at USD 4.84 billion in 2025 and is projected to grow from USD 5.22 billion in 2026 to USD 8.14 billion by 2032, registering a CAGR of 7.8% during 2026–2032.

Market growth is supported by increasing industrialization, stringent wastewater discharge regulations, rising investments in water reuse infrastructure, and growing adoption of advanced treatment technologies across water-intensive industries.

According to the India Semiconductor Mission (ISM) under the Ministry of Electronics and Information Technology (MeitY), 10 semiconductor projects with a cumulative investment of approximately USD 18.7 billion had been approved across six states as of December 2025. These facilities require dedicated ultrapure water (UPW) production, wastewater recycling, and zero liquid discharge (ZLD) infrastructure, creating a new long-term demand stream for industrial water treatment systems.

India Industrial Water Infrastructure Market Key Indicators

• According to the National Mission for Clean Ganga (NMCG), investments of approximately USD 550 million during FY2025–26 enabled the addition of 538.03 MLD of cumulative sewage and industrial effluent treatment capacity through 18 projects, reflecting sustained government investment in wastewater treatment and industrial pollution control infrastructure.
• As per the Namami Gange Programme, three Common Effluent Treatment Plants (CETPs) with a combined treatment capacity of 30.75 MLD have been sanctioned for the industrial clusters of Jajmau (20 MLD), Banther (4.5 MLD), and Mathura (6.25 MLD), supporting centralized industrial wastewater management and regulatory compliance.
• According to Thermax Limited, its Water and Waste Solutions business reported an order book of approximately USD 1.09 billion, indicating robust capital expenditure across industrial water treatment equipment, turnkey EPC projects, water reuse systems, and wastewater management infrastructure.
• The Central Electricity Authority (CEA), India's installed power generation capacity reached 513,729.69 MW by December 2025, including nearly 246.94 GW of coal-based thermal capacity, sustaining demand for boiler feed water treatment, cooling water management, and industrial effluent treatment infrastructure.

India Industrial Water Infrastructure Market Scope

India Industrial Water Infrastructure Market Growth Driver

Escalating Industrial Effluent Enforcement Accelerates Investment in Compliance-Grade Water Infrastructurellution Control Board and State Pollution Control Boards to initiate action against more than 1,700 industries for failing to install Online Continuous Effluent Monitoring Systems (OCEMS). In parallel, Common Effluent Treatment Plant (CETP) projects are being developed across key industrial clusters under the Namami Gange Programme, encouraging industries to invest in advanced treatment technologies and centralized wastewater management infrastructure, thereby creating sustained demand for industrial water infrastructure solutions.

Recent Trend

Rising Deployment of Semiconductor and Electronics-Grade Ultrapure Water Systems

India's expanding semiconductor and electronics manufacturing ecosystem is creating strong demand for high-purity industrial water infrastructure. The Government of India's Electronics Components Manufacturing Scheme (ECMS), with a total outlay of approximately USD 2.67 billion, had attracted investment commitments of nearly USD 13.4 billion by September 2025. The rapid expansion of semiconductor fabs, electronics component facilities, and advanced manufacturing plants is increasing the deployment of ultrapure water (UPW) systems, high-performance membrane technologies, and water recycling infrastructure to meet stringent production quality requirements.

Equipment manufacturers are strengthening domestic production capabilities to support this emerging demand. QUA, the membrane technology business of Aquatech, commissioned a new membrane manufacturing facility in Pune, expanding local production of advanced membrane elements used in ultrapure water and industrial wastewater treatment applications. The localization of membrane manufacturing is expected to reduce supply chain dependence, shorten project execution timelines, and accelerate the adoption of advanced water treatment systems across India's semiconductor, pharmaceutical, and electronics manufacturing industries.

India Industrial Water Infrastructure Market Opportunities and Challenges

High Capital Requirements for ZLD Systems Create Opportunities for Shared Industrial Water Infrastructure

The high capital and operating costs associated with zero liquid discharge (ZLD) systems remain a significant challenge for small and medium-sized industries, particularly across textile processing clusters. Many dyeing and processing units lack the financial capacity to invest in advanced wastewater treatment and water recycling infrastructure independently. To support compliance, the Union and Tamil Nadu Governments sanctioned approximately USD 82 million for the development of 18 Common Effluent Treatment Plants (CETPs) with ZLD systems in the Tiruppur textile cluster, including nearly USD 35 million in direct subsidies, highlighting the importance of public funding in achieving environmental compliance.

The growing need for cost-effective water management is accelerating investments in centralized industrial water infrastructure. The PM MITRA Textile Park at Virudhunagar, Tamil Nadu, is being developed with an investment of approximately USD 1.27 billion, incorporating a common Effluent Treatment Plant (ETP) and Sewage Treatment Plant (STP) as part of its integrated infrastructure. This shared utility model enables industries to access compliant wastewater treatment facilities without significant upfront capital investment, creating long-term opportunities for engineering, procurement and construction (EPC), operations & maintenance (O&M), and industrial water infrastructure solution providers.

Segmentation Insights

Industrial Wastewater Infrastructure Leads Capital Spending Across Industrial Water Networks

Industrial wastewater infrastructure dominates the industry, accounting for 34.2% of the India industrial water infrastructure industry in 2026, making it the largest infrastructure asset segment. The segment maintains its leadership due to mandatory environmental compliance across industries, as every industrial facility that generates wastewater must install appropriate treatment infrastructure before discharge. India generates approximately 12,000 million litres per day (MLD) of industrial wastewater, creating sustained demand for effluent treatment plants (ETPs), Common Effluent Treatment Plants (CETPs), wastewater conveyance systems, and associated treatment infrastructure across major industrial clusters.

The segment generates the highest revenue owing to its large installed base, recurring infrastructure upgrades, and mandatory compliance requirements. Regulatory enforcement continues to accelerate investments in industrial wastewater infrastructure, with the National Green Tribunal directing action against more than 1,700 industries for failing to install Online Continuous Effluent Monitoring Systems (OCEMS). The growing adoption of digitally monitored treatment systems, coupled with periodic upgrades to meet evolving discharge standards, is driving sustained investments in effluent treatment plants, monitoring infrastructure, and associated wastewater management assets across India's industrial sector. Based on infrastructure asset type, the industry is segmented into:

• Industrial Wastewater Infrastructure
• Water Treatment Infrastructure
• Water Supply Infrastructure
• Water Reuse & Recycling Infrastructure
• Sludge Management Infrastructure
• Desalination Infrastructure

Water Treatment Equipment Anchors Equipment Spending Across Industrial Water Projects

Water treatment equipment is dominating the industry, estimated to account for 24.8% of the India industrial water infrastructure industry by equipment revenue in 2026, making it the largest equipment segment. The segment dominates because it is the primary component of every industrial water treatment facility, supports multiple treatment processes, and serves all major water-intensive industries. According to UN Comtrade, India imported water filtering and purifying machinery (HS 842121) worth approximately USD 189.11 million in 2024, including USD 27.46 million sourced from the United States, reflecting sustained demand for advanced industrial water treatment equipment.

The segment generates the highest revenue due to its high capital value, extensive equipment integration, and recurring replacement and modernization requirements throughout plant operations. Large-scale industrial water projects typically incorporate treatment systems alongside pumps, pipelines, automation, and monitoring equipment, making treatment equipment the largest procurement category. Reflecting this trend, Larsen & Toubro (L&T) secured a significant design-build-operate contract from the Guwahati Metropolitan Drinking Water & Sewerage Board, reinforcing the central role of water treatment equipment in integrated water infrastructure projects. Based on equipment type, the industry is segmented into:

• Water Treatment Equipment
• Pumps & Pumping Systems
• Pipes, Valves & Fittings
• Filtration Equipment
• Membrane Systems
• Automation & Control Systems
• Water Quality Monitoring Instruments
• Sludge Handling Equipment

India Industrial Water Infrastructure Market Competitive Analysis

The India industrial water infrastructure industry is highly fragmented, with the top five companies estimated to collectively hold approximately 19% of the market share in 2026, while numerous regional EPC contractors, chemical formulators, and pump manufacturers compete across industrial clusters. Leadership is driven by proprietary membrane and ion-exchange technology, EPC execution scale, long-term O&M contract relationships with refineries and power utilities, and vertically integrated engineering-to-chemicals portfolios.

Top Companies in the India Industrial Water Infrastructure industry:

• VA Tech Wabag Limited
• Ion Exchange (India) Limited
• Thermax Limited
• Larsen & Toubro Limited
• Veolia India
• SUEZ India
• Aquatech Systems Asia Pvt. Ltd.
• Tata Projects Limited
• Triveni Engineering & Industries Limited
• Megha Engineering & Infrastructures Limited (MEIL)

India Industrial Water Infrastructure Industry News and Recent Developments

January 2026: VA Tech Wabag Secures Industrial Water Infrastructure Contract for BPCL's Bina Refinery Expansion

VA Tech Wabag secured a major engineering, procurement, and construction (EPC) contract from Bharat Petroleum Corporation Limited (BPCL) for the industrial water block at the Bina Petrochemical and Refinery Expansion Project in Madhya Pradesh. The project includes a Raw Water Treatment Plant, Reverse Osmosis (RO)-based Demineralisation Plant, and a Zero Liquid Discharge (ZLD) Plant, strengthening integrated water management infrastructure for one of India's largest refinery expansion projects.

Impact Analysis: The project highlights the growing adoption of integrated industrial water infrastructure combining raw water treatment, demineralisation, and wastewater recovery within a single EPC package. It also reflects increasing investments by the refining and petrochemical industries in advanced water treatment solutions to support capacity expansion while complying with stringent environmental regulations.

June 2025: Aquatech Expands High-Purity Water Portfolio Through Century Water Acquisition

Aquatech acquired Century Water, a Singapore-based specialist in ultrapure water, wastewater recycling, and process water solutions for the semiconductor, pharmaceutical, and advanced manufacturing industries. The acquisition establishes Century Water as Aquatech's dedicated centre of excellence for ultrapure water technologies, digital water solutions, and long-term operations and maintenance services, further strengthening its capabilities in high-specification industrial water infrastructure.

Impact Analysis: The acquisition enhances Aquatech's competitiveness in supplying ultrapure water systems for India's emerging semiconductor and advanced manufacturing sectors. The strengthened technology portfolio is expected to support increasing demand for high-purity process water infrastructure as new semiconductor fabrication and electronics manufacturing facilities progress toward commercial operations.