How India’s Water Policies Can Impact Global Business Decisions

India-based Jain Irrigation Systems, a manufacturer of drip and sprinkler irrigation systems, delivers water in a controlled way directly to crops’ roots, which helps alleviate financial strains on small farmers, especially in India’s most water-distressed regions.

The owner, Bhavarlal H. Jain, also sells equipment to farmers with limited capital, but India’s failing irrigation infrastructure has not enticed them to invest in an unreliable water supply.

As a result, Jain’s sales and stock price started to suffer. In 2012, he founded a non-banking finance company, hoping to incentivize farm owners by providing them with ample credit. He also decided to expand his business beyond India to shield his company from the region’s adverse economic and environmental conditions.

To learn how international water policies impacted and ultimately helped save Jain’s company, read Professor Peter Debaere and research associate Allison Elias’ article “How Countries’ Water Policies Affect Multinationals” in the Darden School of Business/Washington Post “Case in Point” series.

About the Faculty

Peter Debaere

Debaere is a leading international economist, with a focus on international trade, multinationals and trade policy. His work addresses fundamental questions about the extent to which trade theories can explain actual international trade patterns. He has also examines the specific impact of trade policies on trade flows and international prices,... Learn More