The Late Embrace of Urban Water Service Privatization in India: A Political Economy Explanation

Abstract

Political and economic reforms in India have made private sector participation (PSP) in urban water delivery a viable strategy for state and city policy, against the expectations of many scholars. This paper provides a comprehensive analysis of the development of temporal, geographic and stakeholder variation in urban water PSP within India. Basic regression models are used to explore state-level determinants of PSP as well as variation in city-level contract features. Findings emphasize the role of political party ideology in implementation, the decreasing cost and length of initiatives, and the prospects for future sector private participation in India.