India's energy sector is under scrutiny for its significant water impact, especially as the country faces water scarcity issues. The report highlights the high water intensity of coal and natural gas plants, contrasting them with the lower water footprint of renewable energy sources like wind and solar. It also discusses the water demands of biofuels and the importance of efficient water management in green hydrogen production. The concept of a 'Blue Deal', inspired by the European Union, is proposed to address water challenges and promote sustainability. Recommendations include implementing water audits, utilizing water bonds, and investing in technologies like wastewater recycling and desalination to mitigate the growing water crisis. By focusing on these strategies, India can progress towards its sustainability and net-zero targets.