This study report by the Water and Sanitation Programme (WSP), a global partnership administered by the World Bank suggests that inadequate sanitation causes India considerable economic losses, equivalent to 6.4 per cent of India's GDP in 2006 at Rs. 2.4 Trillion. It analyzed the evidence on the adverse economic impacts of inadequate sanitation, which include costs associated with death and disease, accessing and treating water, and losses in education, productivity, time, and tourism. The findings are based on 2006 figures, although a similar magnitude of losses is likely in later years.

The study focused on the safe management of human excreta and associated hygiene behavior. The methodology adopted by the study included disaggregating the economic impacts of inadequate sanitation into health-related impacts including premature deaths, costs of treating diseases, and productive time lost due to illnesses; domestic water-related impacts including household treatment of water, and money and time costs to obtain safe water; welfare losses including additional time spent by people for accessing toilets or open defecation sites, and girls having to miss school, and women not going to work; and the loss of potential tourism owing to inadequate sanitation.

Data on incidence (e.g. diarrheal diseases, deaths, etc.) were compiled from national sources (National Family Health Survey, WHO Demographic and Health Surveys, and other Govt. of India sources). Based on scientific literature, attribution factors were used to estimate the populations impacted by inadequate sanitation. Economic valuation was carried out using costs/prices based on secondary studies.

This paper by the International Policy Centre for Inclusive Growth deals with access of the poor to water supply and sanitation in India. It argues that economic, technical, institutional as well as social factors constrain access to safe drinking water and proper sanitation in India for both the urban and rural poor, and that coverage figures do not reflect this restricted access. It finds that, increasingly, communities are being required to manage their own water and sanitation schemes, not just in rural areas but in urban ones as well.

The paper deals with domestic water supply and sanitation and presents a historical overview of the phenomenon in rural and urban India. This is followed by a critique of available figures for coverage which, it is contended, seem exaggerated because they do not account for the several constraints to access. It addresses the specific institutional problems faced in the public sector delivery of these two utilities in India apart from dealing with the parallel yet thus far limited presence of the private sector in these twin arenas.