As per estimates, inadequate sanitation cost India almost $54 billion or 6.4% of the country's GDP in 2006. Over 70% of this economic impact or about $38.5 billion was health-related, with diarrhea followed by acute lower respiratory infections accounting for 12% of the health-related impacts.[4] Evidence suggests that all water and sanitation improvements are cost-beneficial in all developing world subregions.[5]
Sectoral demands for water are growing rapidly in India owing mainly to urbanization and it is estimated that by 2025, more than 50% of the country's population will live in cities and towns. Population increase, rising incomes, and industrial growth are also responsible for this dramatic shift. National Urban Sanitation Policy 2008 was the recent development in order to rapidly promote sanitation in urban areas of the country. India's Ministry of Urban Development commissioned the survey as part of its National Urban Sanitation Policy in November 2008.[6] In rural areas, local government institutions in charge of operating and maintaining the infrastructure are seen as weak and lack the financial resources to carry out their functions. In addition, no major city in India is known to have a continuous water supply and an estimated 72% of Indians still lack access to improved sanitation facilities.