Poor public health
The study "Economic impacts of inadequate sanitation in India" is based on figures taken from 2006, but experts say these remain similar now.
It said the largest economic loss was as a result of poor public health.
World Bank experts say there are 450,000 deaths out of 575 million cases of diarrhoea in every year in India, where millions of people in both rural and urban areas still have to defecate in the open, do not wash their hands and cope with poor drainage systems.
Image: A malnourished child sits at the doorway of his makeshift home at the Rafiq Nagar slum in Mumbai