Inadequate sanitation causes India considerable economic losses, equivalent to 6.4 percent of India’s GDP in 2006 at US$53.8 billion ( about 24000 crore rupee) , according to The Economic Impacts of Inadequate Sanitation in India, a new report from the Water and Sanitation Program (WSP), a global partnership administered by the World Bank.

The study analyzed the evidence on the adverse economic impacts of inadequate sanitation, which include costs associated with death and disease, accessing and treating water, and losses in education, productivity, time, and tourism. The findings are based on 2006 figures, although a similar magnitude of losses is likely in later years.

The report indicates that premature mortality and other health-relatedimpacts of inadequate sanitation, were the most costly at US$38.5 billion, 71.6 percent of total impacts, followed by productive time lost to access sanitation facilities or sites for defecation at US$10.7 billion, 20 percent, and drinking water-related impacts at US$4.2 billion, 7.8 percent.

“For decades we have been aware of the significant health impacts of inadequate sanitation in India, “said Christopher Juan Costain, WSP Regional Team Leader for South Asia. “This report quantifies the economic losses to India and shows that children and poor households bear the brunt of poor sanitation.”

More than three-fourths of the premature mortality-related economic losses are due to deaths and diseases in children younger than five. Diarrhea among these children accounts for over 47 percent (US$18 billion, Rs.824 billion) of the total health-related economic impacts.

At 75 percent more than the national average and 60 percent more than the urban average, the poorest 20 percent of households living in urban areas bear the highest per capita economic impacts of inadequate sanitation. Rural households in the poorest quintile bear per capita losses 8 percent more than the average loss for households in rural areas.