NEW DELHI — Water supply disruptions across India's capital are threatening economic activity as declining Yamuna river levels forced authorities to impose rationing measures of up to 25 per cent in multiple residential and commercial localities.

Treatment facilities at Wazirabad and Chandrawal have curtailed operations following the river's descent below critical thresholds, directly impacting water availability in Patel Nagar, Dwarka, Paschim Vihar and adjoining zones. The cuts come as the capital region battles an extended heatwave, intensifying demand pressures.

The supply shortage poses immediate challenges for hospitality, healthcare and commercial real estate sectors concentrated in affected areas. Businesses dependent on consistent water availability, including restaurants, hotels and office complexes, face operational disruptions that could impact revenues during the peak summer season.

Water scarcity in major urban centres typically drives up tanker supply costs, affecting household budgets and small enterprises. Market analysts note that prolonged shortages could accelerate investments in water management infrastructure and recycling technologies across Delhi-NCR.

States including Bihar, which shares Ganga basin resources with the capital region, are monitoring the situation closely as inter-state water distribution agreements come under renewed scrutiny amid climate variability and rising urban demand pressures.