Extreme water stress in areas of the US, China, and India could undermine economic growth by constraining business activities and hampering agriculture, a new report warns today.

Research by risk analysts Maplecroft finds all three economic superpowers have vast geographical regions and industrial sectors where unsustainable water use is outstripping supply.

Of the 168 countries covered by the newly released Water Stress Index, India, China and the US rank 34, 50 and 61 respectively in the list, while Middle-Eastern and North African nations make up the top 10.

The report warns that the pressure building on available water sources in key economies from agriculture, industry, and the domestic sector may have far-reaching effects on global supply chains and food prices.

Although rated as medium risk overall, the US has large areas already suffering from the depletion of ground water supplies, with states including Arizona, California, Kansas, Nebraska, New Mexico, and Texas classified as being at “high” and “extreme risk” of water shortages.

Maplecroft says the Ogallala Aquifer in the high plains region of the US, which supplies many of the most at risk states and supports 15 per cent of national corn and wheat production, as well as a quarter of the cotton crop, is being depleted faster than it can be recharged and it is uncertain how much longer fresh water will be available. It also warns the resulting effects on US agricultural outputs could cause significant inflation on the global commodities markets.

A similar problem can be seen in India, where large swathes of its most important agricultural land are listed as areas facing an “extreme” level of water stress. Farming is the main cause of unsustainable water practices in India, such as over-extraction of ground water, which can dry up wells, cause land subsidence and draw salt water into supplies, making it unusable by businesses, agriculture, or consumers.

Closer to home, the UK is rated 99 on the list despite drought being declared in almost half the country in recent months, although this status was lifted in 19 counties today. However, although the UK is categorised as low risk overall, the South East and Midlands contain areas of high and medium risk with the report warning agriculture could face disruption if water risks increase.

Alyson Warhurst, chief executive of Maplecroft, advised businesses to come up with a plan to deal with water shortages across their operations or risk running up losses.

“Businesses should undertake impact assessment and monitoring of water stress and water security and other areas of risk that conflate with such pressures including food security, conflict and energy availability,” she said.

“Supply chain risk, if not managed strategically, can lead to business discontinuity and unforeseen costs that undermine the profitability of projects.”