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State some Economic Benefits of Rivers and Lakes

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  • Last Updated : 16 Aug, 2022
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A lake is a body of water surrounded by land. The water in the lake is calm or standing. That is, it does not flow from point A to point B as in a river. Lakes are mostly freshwater because they are often fed by rivers, springs, or precipitation (also called rain and snow). However, some of the more famous lakes, such as the Dead Sea and the Great Salt Lake, are salt lakes and contain only salt water.

Uses of Lakes

  1. Helps in Carrying Loads: Lakes are a great medium for carrying heavy loads. Large lakes, such as the Great Lakes of North America, provide a very inexpensive and convenient way to transport heavy and bulky goods such as iron, coal, machinery, grain, and wood.
  2. Lakes are the Pathway to Economic and Industrial Development: In the past, human settlements took place where lakes were located, and the existence of lakes had a significant impact on city buildings. People migrated closer to lakes to obtain water, which gave rise to civilizations, which in turn led to economic and industrial growth in the region. Lakes are even more decisive when replenished with fertile large rivers.
  3. Water Storage: Natural or artificial lakes are an important source of domestic water supply. They provide water to cities and industrial cities. In England, for example, Thirlmere Lake waters Manchester, Lake Katrine waters Glasgow, and Lake Vyrnwy in Wales waters Liverpool. In India, the Okla Reservoir supplies Delhi with water. While Veteran, Vihar, and Tulsi lakes water, Bombay.
  4. Hydro-Electric Power Generation: In mountainous areas, lakes or man-made reservoirs provide water for local hydroelectric power generation. At the same time, natural lakes are preferable to artificial ones. The Niagara River, which flows from Lake Erie to Lake Ontario, is supplied with this water on a regular basis to support the operation of the power plant.

Importance of Lakes 

Lakes are usually formed as a result of tectonic or glacial activity in a typical area. Lakes are also formed as a result of river bends or human activity. Lakes are very important to civilization. There are many reasons to point out. Because lakes are a source of water and water is a specific source for sustaining life on this planet.

  • To regulate the flow of rivers. 
  • To store water in the dry season.   
  • To maintain and balance ecosystems.
  • Lakes also help recharge groundwater.   
  • Helps to improve and preserve the biodiversity of the area where the lake is located.   
  • Lakes also benefit the economy by increasing local economic activity. 
  • Sightseeing was preferred, as the lake has always been considered a place of rest.
  • There are different types of lakes in India, including freshwater lakes and salt lakes. Jammu and Kashmir’s famous Lake Wular is the largest freshwater lake in India. Other freshwater lakes are Lake Bhimtal and Lake Nainital, located in Dal, Uttarakhand, Jammu, and Kashmir. Lake Kolleru is also located in Andhra Pradesh. This lake Kolleru is officially classified as a wildlife sanctuary and serves as a source of entertainment.    
  • Lake Samba in Rajasthan is one of the largest salt-producing salt lakes. Thus, this makes Rajasthan the third largest salt producer in the country. Brackish is a mixture of salt and fresh water. Located in the state of Orissa, Lake Chilika is the largest brackish lake in India.


Rivers are one of the main sources of water on Earth because most of the rivers carry fresh water, they are one of the main life support systems on Earth. A river is a natural waterway that flows toward an ocean, sea, lake, or another river, and is usually fresh water. In some cases, rivers drain into land and dry out at the end of the course without reaching other bodies of water. Small rivers may be referred to by names such as brook, brook, creek,  and brook.

Uses of Rivers

  • Rivers are a major source of drinking water, irrigation, and agriculture.   
  • Critical rivers give way to electricity generation.  
  • The river ensures the presence of fertile soil on the territory.  
  • Asia’s largest river supports China’s most populous country.   
  • An important river can also be a business by providing fishing opportunities.

Economical Benefits Of lakes And Rivers

When humans began the process of settlement, close water bodies were preferred because the water was considered essential for survival. These settlements eventually developed into large cities. In countries like India, where most of the population depends on agriculture for their livelihood, rivers are considered the most important source. Tourism is a must in any country. Lakes and rivers can be developed for tourism and used for recreational purposes. The economic benefits of rivers and lakes are:

Source of Freshwater

Only 2.5% of the water on Earth is fresh, of which less than 1% is available. Fresh water is essential for human survival. It is home to nearly one-third of aquatic animals and is conducive to fisheries development, which leads to job creation and food security.


Irrigation is essential for agriculture. In the Indian economy, agriculture is considered the backbone of India, where most of the population is engaged in agricultural activities. 


Navigating through bodies of water to connect with different places has been used for centuries. This is considered a cheap means of transportation.

Hydropower generation

It is used to convert mechanical energy into electrical energy. Flowing water is converted into mechanical energy. It is considered an inexpensive and environmentally friendly energy source.

Development of tourism

For the economy of any country, tourism is essential. In arid regions, interwoven water sources are important for tourism. As a natural resource, water is essential for the survival of humans and other aquatic flora and fauna. It is considered important for purposes of irrigation, navigation, and hydroelectric power. Tourism and recreation play a fundamental role in the economic benefits of lakes and rivers.

Sample Questions

Question 1: How do rivers affect India’s economy? 


The river’s most important contribution is its water supply for irrigation and industrial purposes. It also serves as a wastewater treatment system. There are many river ports that increase trade and commerce between countries.  In this way, rivers serve as the lifeline of people and the economy as a whole.

Question 2: How can rivers help the industry?  


Large power plants and other industrial facilities that carry the vast amounts of water needed for cooling are often located along rivers. Manufacturers of petrochemicals, steel, and wool fabrics also have high demands.

Question 3:  Why is sustainable river management so important to the economy?  


The poor direct benefit from improved access to basic water and sanitation services through better health reduced health care costs and time savings. Proper management of water resources provides greater confidence and efficiency in the productivity of various sectors of the economy and contributes to the health of ecosystems.

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