Rajasthan, as India’s largest state by area, is also India’s driest state. Limited availability of utilizable surface water and ground water resources has been the challenge for Rajasthan’s economy.
With frequent droughts and deteriorating agriculture infrastructure, the state is faced with downside risks from inefficient water usage. The state’s GDP per capita is below the nation’s average by 13%.
With scarce water resources, per capita water availability in Rajasthan is about 780 cubic meters per year. This number is severely low by the international standards. Yields of many major crops in Rajasthan are below the national average.
Two thirds of the state’s population work for agriculture sector, but output of the sector only accounts for about 28% of the state’s GDP. In this context, Rajasthan Water Sector Restructuring Project for the Desert Areas (the Project) is designed, with the support from the New Development Bank (NDB) and counterpart funds from Government of Rajasthan.