Improved access to water and sanitation plays important role to enhance human well-being, productivity and overall development (UNICEF, 2019). Reducing water poverty is a policy challenge, particularly in emerging economies like India, owing to its population growth, huge variation in topology, climatic change and climate change induced extreme events. Against this backdrop, this research delves into the critical issue related to water poverty in India with specific emphasis on the multifaceted challenges posed by inadequate access to clean and sufficient water resources. The thesis makes an attempt to estimate the water poverty index through a multidimensional approach and analyze the impact of climate change on such water poverty index. We also explore the moderating effect of households’ political connection, if any, on water poverty. To construct the Multidimensional Water Poverty Index (MWPI), the Alkire-Foster dual cut off method was applied using two rounds of Indian Human Development Survey (IHDS) data (2004-05 and 2011-12). This index transcends the usual focus on simple access and considers nuanced aspects like access, stress, quality, and capacity, offering a comprehensive depiction of water poverty situation in India. The findings show 44.9 percent and 40.9 per cent of the households are water poor in 2004–05 and 2011–12, respectively. Decomposing of the country's MWPI for both rounds shows Orissa and Bihar as the states with the highest MWPI for rounds 1 and 2, respectively. In addition, the study employs a sophisticated Difference-in-Difference-in-Difference (DDD) framework to examine how climate change and climate-induced natural disasters affect water poverty and examine whether political connection has any moderating impact. This facet adds depth to the analysis, shedding light on the interplay between political connectivity and the vulnerability to water poverty during disasters. The findings reveal heterogenous impact of disasters on water poverty across households with different levels of political connection. With a specific focus on Meghalaya, this research further estimates the household's water poverty and willingness to pay for domestic water supply to understand the relationship between water poverty and willingness to pay. We also propose to quantify the economic cost of water collection. By employing a combination of primary and secondary data, rigorous econometric methodologies, and established assessment frameworks, this research provides nuanced insights into the dynamics of water poverty, its determinants, and its implications for households' well-being and development. Through a comprehensive analysis, the study aims to contribute to the existing policies and strategies that address the pressing challenges of water poverty, fostering equitable access to water resources and sustainable development in India.
Keywords: Multidimensional water poverty index, Alkire-Foster approach, political connection, climate change induced disaster, Difference-in-Difference-in-Difference, SDG (Goal-6).