Addressing the CII Infrastructure Summit, Nageswaran said India is increasingly witnessing floods and droughts in the same State within a year. "Volatility, and not scarcity, is the new enemy of economic activity," he said, stressing that water infrastructure should be planned, built and financed just like roads and power.

He called for creating a comprehensive water buffer through greater storage capacity, groundwater recharge, wastewater reuse, desalination in coastal regions, and watershed management inland. "Water security is not a sector sitting beside agriculture, industry and health; it sits underneath all of this," he said.

Linking urban planning with water management, the CEA said India's low FSI limits compared with global cities have forced urban sprawl instead of vertical growth. As cities expand outward, he said, land becomes scarcer and more expensive, pushing development onto ecologically sensitive areas such as old tanks, lakes and filled-up ponds.

"When we cannot build upward, we spread outward. Every square metre of built space ends up carrying more land beneath it," he said.

The loss of traditional waterbodies and catchments, he added, leaves cities vulnerable to flooding during heavy rains while reducing their ability to store water during dry spells.

"We gain a little floor space and lose our storage. When the rains come, the water has nowhere to go, and we face flood. When they fail, nothing has been held back, and then we run dry. Everyone loses in the end," Nageswaran said.

He also criticised the practice of pricing water at virtually zero, saying it encourages waste and discourages investment in water infrastructure. "The thing we call free is the thing we destroy. This is not a paradox. It is a policy choice, and it can be chosen differently," he remarked.

Nageswaran’s remarks come amid growing concerns over climate-induced weather extremes and renewed focus on urban resilience and sustainable infrastructure planning.