ABSTRACT Industrial effluent discharge remains a major contributor to water pollution in India, posing serious risks to freshwater ecosystems, groundwater reserves, and public health amid accelerating industrial growth. This study examines the regulatory and judicial responses to industrial wastewater management and evaluates whether an ecosystem‐focused decentralized governance model can enhance compliance and environmental protection. The research adopts a doctrinal–empirical methodology. Doctrinal analysis was conducted on key statutory instruments including the Water (Prevention and Control of Pollution) Act 1974 and the Environment (Protection) Act 1986, along with recent judicial decisions of the Supreme Court of India and the National Green Tribunal. Empirical data were collected through a structured survey of 231 stakeholders including regulators, industry compliance officers, legal practitioners, academics, and civil society representatives. Statistical tools including descriptive analysis, chi‐square testing, and ordinal logistic regression were applied. Findings indicate moderate self‐reported compliance across sectors, significant cost‐related barriers for small and medium enterprises, and a marked trust deficit toward regulatory authorities compared with the judiciary. Statistical models reveal that institutional trust alone does not significantly predict compliance behavior, suggesting deeper structural and contextual determinants. The study proposes an ecosystem‐specific, decentralized regulatory framework integrating real‐time monitoring, tiered compliance incentives, and strengthened judicial oversight. Although grounded in the Indian context, the findings offer broader lessons for developing economies seeking to reconcile industrial expansion with sustainable water governance under conditions of regulatory fragmentation.
Rout et al. (Sun,) studied this question.
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