The Gujarat government is developing a new policy focused on wastewater recycling and reuse to address the growing pressure on drinking water resources. This policy will mandate industries and commercial entities to utilize treated wastewater for non-drinking purposes, offering incentives for such practices. The policy aims to create a legal framework for mandatory wastewater recycling, particularly for water-intensive industries like chemical, chip-making, and textile sectors. This initiative is driven by concerns about water scarcity, which the World Bank predicts could reduce India’s GDP by 6% by 2050. The policy aligns with the NITI Aayog’s Comprehensive Water Management Index, which emphasizes the importance of wastewater reuse and recycling. By promoting sustainable water management, the government aims to improve public health, support agriculture, and bolster economic stability.