Emerging economies such as China and India should adopt strict policies to curb their water use in key sectors such as agriculture, argues a new report by McKinsey & Company, warning that increasing scarcity threatens the stability of countries in which companies operate.

If no action is taken, projected population and economic growth will lead to global water demand "that is 40% in excess of current supply" and even "more than 50% higher" in the most rapidly developing countries, warns a new report by global management consulting firm McKinsey & Company.