A Preliminary Assessment of Water Institutions in India: An Institutional Design Perspective

Water institutions in India play a crucial role in managing scarce water resources and are central to economic development and poverty alleviation. Designing appropriate institutional mechanisms to allocate scarce water and river flows has been an enormous challenge due to the complex legal, constitutional, and social issues involved. The Indian water sector has been grappling with poor performance and deterioration of public (canal and tank) irrigation systems, high extraction levels of groundwater, and related economic and environmental problems. The objective of this article is to carry out a preliminary assessment of institutional mechanisms available to manage water resources in India. The article surveys various formal and informal institutional arrangements that are used at present and their design features in order to identify those institutions related to superior performance. The analysis indicates that crafting "winning institutions" and the policy frameworks to strengthen them should take into account not only the proven criteria of institutional design but also the changing socioeconomic, political, and cultural factors. Copyright 2006 by The Policy Studies Organization.