Pricing water in Mumbai could unlock innovation for struggling Indian climate tech startups

India's climate tech startup ecosystem faces significant challenges, with only about 800 of 2,600 startups founded in the last decade still operational. Many struggle to secure funding beyond their fourth or fifth year, a critical period when financial resources typically dry up.

Experts highlight that the problem is not just a lack of capital but also a degree of self-deception within the sector. One notable example is a startup aiding sugarcane farmers to increase yields by 30 percent while saving 75 percent of water, yet it struggles to scale.

Ramesh, an industry observer, advocates for pricing water in Mumbai as a catalyst for innovation. Mumbai's population is roughly four times that of Singapore, and introducing water pricing could unlock significant technological advancements and business opportunities in water conservation.

"Pricing water would be a great start," Ramesh says. "Think of the innovation that pricing water in just one city could unlock." This approach could provide the necessary market signals and incentives for startups to develop scalable, impactful climate technologies.

With water scarcity becoming an urgent issue, especially in densely populated urban centers like Mumbai, such policy measures could be pivotal in sustaining and growing India's climate tech sector.

In India, only about 800 of 2,600 climate tech startups survive beyond five years, often due to funding shortages. Experts suggest that pricing water in Mumbai, a city with a population four times that of Singapore, could drive innovation and support struggling startups focused on water-saving technologies.