While several experts sound the alarm over India’s rising water deficit, analysts at PL Capital highlighted that water demand may exceed supply by nearly 2x by 2030, creating an infrastructure investment opportunity worth more than Rs 20 lakh crore over the next decade to bridge this gap.In its report titled 'Water Megatrend 2.0', PL Capital noted that India accounts for nearly 18% of the global population but only 4% of global freshwater resources, creating a structural water deficit that necessitates sustained investment across the water value chain. “Unlike cyclical infrastructure themes, water security remains a national priority irrespective of political or economic cycles, underpinning a long-duration growth opportunity for water EPC, treatment, recycling, and O&M players,” it said.The domestic brokerage said that India is among the world's largest water and wastewater markets, supported by significant government spending and tightening environmental regulations. Key growth drivers according to it include rural water connectivity under Jal Jeevan Mission (JJM), urban water and sewerage infrastructure under AMRUT 2.0, river rejuvenation programs, industrial wastewater treatment, desalination and water reuse projects.The Indian water and wastewater treatment technology market is projected to grow from nearly $3 billion in FY25 to $5.2 billion by FY31, implying a CAGR of around 10%, as per PL Capital. Simultaneously, it expects industrial water and wastewater infrastructure spending to grow at around 8% CAGR through 2030, driven by stricter discharge norms, Zero Liquid Discharge (ZLD) mandates, and rising industrial water consumption.Also read: India's 'fragmented' water management framework raises fiscal, credit risks, says Moody'sAccording to PL Capital, Sewage Treatment Plants (STP) segment is one of the largest opportunity pools as India’s sewage treatment infrastructure remains significantly underpenetrated. The country generates approximately 72,000 MLD of sewage, while installed treatment capacity stands at only 27,000 MLD, with effective treatment even lower, the report said, adding that nearly 70% of sewage continues to be discharged untreated, highlighting a substantial capacity deficit.Which stocks will benefit?PL Capital named three stocks that can in turn benefit from this growing water deficit. These include VA Tech Wabag, Enviro Infra Engineers and Denta Water and Infra Solutions.VA Tech Wabag, which was founded in Germany back in 1924, is now a leading Indian multinational and India’s largest pureplay water technology company, the domestic brokerage highlighted. The company specialises in designing, constructing, and operating Drinking Water Treatment Plants (WTPs), Sewage Treatment Plants (STPs), Common Effluent Treatment Plants (CETPs), industrial water systems, recycle-reuse plants, and large-scale desalination facilities. The shares of the company have fallen over 4% in one week but gained 35% in one year and 52% in 2026 so far.Enviro Infra Engineers meanwhile is an integrated water and wastewater infrastructure company with a presence across 17 states in India. It specializes in designing, constructing, and operating Water Treatment Plants (WTPs), Sewage Treatment Plants (STPs), Common Effluent Treatment Plants (CETPs), and Water Supply Scheme Projects (WSSPs). The shares of the company debuted on the stock market in 2024. Enviro Infra Engineers shares have fallen 1% in one week but gained 18% in one month.Bengaluru-headquartered Denta Water and Infra Solutions is a civil engineering contractor specialising in water revitalisation, groundwater recharge, sewage treatment and irrigation projects. Denta Water and Infra Solutions shares have fallen around 2% in one week but gained 32% in one month.Also read: Forget power! The unquenchable AI thirst propelling water stocks up to 45%(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)