ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Water as a commodity has under gone a significant transformation from being a common good to being an economic good in the recent past. Common good means something which is shared and beneficial for all or most members of a given community while economic good means something which can command a price when sold.

Detailed explanation-2: -The commodification of water refers to the process of transforming water, especially freshwater, from a public good into a tradable commodity also known as an economic good. This transformation introduces water to previously unencumbered market forces in the hope of being managed more efficiently as a resource.

Detailed explanation-3: -Like gold and oil, water is a commodity-and it happens to be rather scarce nowadays. So, as with any other scarcity, the water shortage creates investment opportunities.

Detailed explanation-4: -Communities lead India’s groundwater conservation efforts Come summer, and water becomes a commodity as precious as gold in India.

Detailed explanation-5: -Water is utilized in industries as a coolant, solvent, and in other production processes. Water is used to generate hydroelectric power. Navigation and cargo-transportation is also done on the water. This demonstrates how water is the most important component of life, and that every drop is necessary for survival.