"India's demand for water is expected to exceed all current sources of supply and the country is set to become water scarce country by 2025.

"With increasing household income and increasing contributions from the service and industrial sectors, the water demand in the domestic and industrial sectors increasing substantially," PTI reported quoting a study conducted by EA Water, a leading consulting firm in water sector.

Nearly 70 per cent of country's irrigation and 80 per cent of domestic water use comes from groundwater, which is rapidly getting depleted.

However, overseas players from Canada, Israel, Germany, Italy, United States, China and Belgium sees big investment opportunity worth USD 13 billion in the domestic water sector.

The industry is expected to receive Rs 18,000 crore in the next three years, the report said.

The country provides huge opportunities across the spectrum in infrastructure development for water supply and wastewater management.

The industrial market is going to be the big opportunity till 2020, with growth in wastewater recycling and industrial water treatment, the report said. Maharashtra is emerging as a hub for the water sector.

Over 12 international companies have already set up design and engineering centers in Mumbai and Pune.

At present, there are more than 1,200 companies dealing in water and wastewater treatment in the state, mainly cater to the small & medium sector.

Pune and Nashik are going to be large hubs for manufacturing & fabrication industry in pumps, instrumentation & monitoring equipment.

A centralised wastewater treatment & recycling plants is under planning stage for Mumbai and Pune city, the report said.

With Modi government's planned investments in the water sector through the Ganga River Cleaning project, the Smart Cities initiative and the Swachh Bharat campaign, the industry is also hopeful of creating over 1 million jobs, it said.