Lack of adequate sanitation infrastructure cost India a whopping $54 billion in 2006 - close to 6.4 percent of the country's gross domestic product (GDP) - according to a World bank study.

“Inadequate sanitation causes India considerable economic losses at $53.8 billion (Rs.2.4 trillion),” the report Water and Sanitation Program (WSP), a global partnership administered by the World Bank said. 

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

The report indicates that at least 575 million people in rural areas and 54 million people in urban areas defecate in open.

The study also gave the break down on how sanitation is draining the country. The premature mortality and other health-related impacts of inadequate sanitation were considered the most costly at US$38.5 billion (Rs.1.75 trillion, 71.6 percent of total impacts), followed by productive time lost in accessing sanitation facilities or sites for defecation at US$10.7 billion (Rs. 487 billion, 20 percent), and drinking water-related impacts at US$4.2 billion (Rs. 191 billion, 7.8 percent).

The study titled ‘The Economic Impacts of Inadequate Sanitation in India’ calculated the costs associated with death and disease, accessing and treating water, and losses in education, productivity, time, and tourism for the year 2006.

“This report quantifies the economic losses to India, and shows that children and poor households bear the brunt of poor sanitation,” said Christopher Juan Costain, WSP Regional Team Leader for South Asia.

The report noted that the poorest citizens bear the brunt of the problem. “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,” it said.

The report further highlights that the proper sanitation facilities can save India $32.6 billion (Rs.1.48 trillion) or $29 (Rs.1321) per capita. It also said that the government needs to spend more on the national rural sanitation scheme ‘Total Sanitation Campaign’.

“Tourism revenues suffered from the lack of proper sanitation and costing the country about $260 million,” the report said.