Australian AID (AusAID)

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.