Yes, water scarcity in India by 2025 due to demand vs supply mismatch is a real possibility.

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, a new study conducted by EA Water says.

The water sector is expected to see investment of $13 billion from overseas players in the next few years, the study states.

"With increasing household income and increasing contributions from the service and industrial sectors, the water demand in the domestic and industrial sectors increasing substantially," it further reads.

Nearly 70% of country's irrigation and 80% 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 $ 13 billion in the domestic water sector.

The industry is expected to receive R s 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 waste water management.

The industrial market is going to be the big opportunity till 2020, with growth in waste water 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 waste water treatment in the state, mainly cater to the small and medium sector.

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

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

With PM 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.