ALWAR, Rajasthan: For global beverage makers operating in India, regulatory hurdles are nothing new. But in Rajasthan, one of the country's driest states, companies face an added constraint: producing drinks in regions where groundwater is rapidly depleting, and nearby villages receive piped water just once a week.

Nearly two-thirds of Rajasthan lies in the Thar Desert, and the state ranks among India's highest users of groundwater. With a population of about 85 million, expanding tourism, agriculture, and industry are competing for increasingly scarce water resources.

India's laws prohibit the movement of liquor across state borders without special permits, effectively forcing alcohol producers to set up manufacturing units in every state where they sell. That requirement has pushed companies such as Diageo, Carlsberg, and Heineken to operate plants in water-stressed Rajasthan.

"(Water stress) is a growing issue in India," said Sonia Thimmiah, senior director of global sustainability at Heineken, noting that in recent years water demand in some cities had nearly exceeded supply.

The brewers say they are boosting water efficiency, improving community access, and aiming to replenish 100 percent of the water they use. Their efforts reflect a broader national challenge: India has 17 percent of the world's population, but only four percent of its freshwater resources, and rapid economic growth is intensifying pressure on supplies.

The strain is visible in Alwar, about 150 km southwest of Delhi, where many beverage plants are located. Government data show that groundwater extraction across the broader district, driven mainly by irrigation, is almost double the rate at which aquifers recharge.

Although industry accounts for just around 2 percent of Rajasthan's water use, Indian law requires all commercial users to install rainwater harvesting and recharge systems. In "over-exploited" zones such as Alwar, companies must also adopt advanced water-efficient technologies.

"The water tables are declining, and rains are variable," said Sumit Walia, Diageo's Alwar head. "We have a vision to reduce water consumption by 40 percent and to ensure that whatever water is withdrawn from the ground, 100 percent replenishment is there. We are recycling 100 percent of the wastewater and installing advanced technologies that consume less water."

Federal permits allow brewers in Alwar to draw up to about 4.6 million litres of groundwater a day, with global firms accounting for roughly 65 percent of that total. Heineken is the largest single user at about 1.2 million litres.

For nearby villagers, access remains difficult. "The situation is very bad," said Imran Khan, head of Salpur village. "We have to give several days of notice to the borewell owner to pump water for us — there's a queue."

Some residents blame breweries for the shortage. "They are making alcohol there, but locals do not have enough water to drink," said Haider Ali, who took several companies to India's environmental court last year. Inspectors later found the plants complied with regulations, though the court ordered stricter monitoring of groundwater use.

Companies say they are not the main drivers of scarcity and point to community projects. Carlsberg's sustainability chief Simon Boas Hoffmeyer said its replenishment goals exceed regulations: "If everybody did that, the industry's share of the issue would be very, very small."

Non-profits working on company-backed projects say groundwater levels have improved in places but caution that in Rajasthan, "there is always scope for more."