New Delhi, June 23 -- India's water governance structure is characterised by dispersed administration, weak pricing flexibility and slow reallocation of water across sectors - conditions that raise the risk of prolonged shortages and sustained fiscal pressure, Moody's Ratings has said in a report on water allocation framework.

The global rating agency in its report classified India's approach as 'fragmented or inflexible', noting that such frameworks can result in more prolonged shortages, higher costs, greater industrial disruptions and persistent credit strain, PTI reported.

Water governance in India is spread across more than 28 states, with management and policy largely controlled by individual state governments.

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