In absolute terms India receives almost twice as much development assistance for water, sanitation and water resources management as any other country, according to data from the Organisation for Economic Co-operation and Development. India accounts for 13 per cent of commitments in global water aid for 2006-07, receiving an annual average of about US$830 million, more than double the amount provided to China.

India's biggest water and sanitation donor is Japan, followed by the World Bank. The Asian Development Bank and Germany are other important external partners in water supply and sanitation. India accepts bilateral aid from five countries (the United Kingdom, the United States, Russia, Germany and Japan).

A further 22 bilateral donors channel aid through nongovernmental organisations, United Nations agencies or multilateral institutions such as the European Union, the Asian Development Bank etc. Apart from international agencies and finanical instituions, India also has a robust domestic financial sector which also provides funds for projects. The government also utilises various schemes and grants and subsidies as a means of spurring invetsment in the sector.