Titled "Safeguarding India's Water Resources-The Business Case for Water Disclosure in India", the report aims to promote water stewardship and reporting among the country's corporate community.

It was prepared by CDP, an international NGO, and KPMG, one of the largest professional services companies in the world.

The report further said Indian businesses are currently underestimating water-related risks due to lack of effective measurement and monitoring.

"Water is a major driver for sustenance of a civilisation, food security and economic prosperity. Its mismanagement can result in significant harm to the environment and to the people," said Ranganath N.K., managing director, Grundfos India.

"Effective management of water resources and use is one of the most critical business and sustainability challenges of the 21st century. We hope that through this report, we are able to help fuel the acceptance of water auditing and annual water reporting within corporate India," he added.

Grundfos India partnered with CDP to launch the report.

The water report identifies that companies are increasingly aware of water-related risks but actions to manage water issues at a corporate level are inadequate.

It further revealed that India faces an impending water crisis.

"The availability and quality of water poses a dirty and deep challenge to businesses and communities in India. Both the UN (United Nations) and IPCC (Intergovernmental Panel on Climate Change) have warned of increasing water stress in large parts of the world. These factors will limit economic development and greatly exacerbate rural poverty, particularly in emerging and developing economies," said Damandeep Singh, director, CDP India.

Singh added that businesses, as well as nations, need to prepare and work towards safeguarding this vital resource which is already becoming as expensive as oil in some parts of the world.