Indadequate Indian sanitation system – The economic impact
Chanakya, 20th Feb 2012, Posted in: blog, Engaging Real India, The economy!,

Economic impacts of inadequate sanitation

In one of the first of its kind, the World Bank sponsored study was undertaken by the World Sanitation Program. The sanitation crisis in the developing world is statistically tied to the economic losses incurred by one of the poorest strata of the world. According to this study (2006), the total annual economic impact of inadequate sanitation in India amounted to a loss of Rs. 2.4 trillion ($53.8 billion). That translates into a per capita annual loss of  Rs. 2,180 ($48).

According to this long drawn study – “These economic impacts were the equivalent of about 6.4 percent of India’s gross domestic product (GDP) in 2006. The health-related economic impact of inadequate sanitation was Rs. 1.75 trillion ($38.5 billion), which was 72 percent of the total impact. Access time and water-related impacts made up the other two main losses.”

The infographic below depicts the economic impact that can be attributed to each of the subcategories…

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