When Young's double-slit set up for interference is shifted from air to within water then the fringe width decreases because the refractive index of water is more than that of the air.
Originally the fringe width is given by: β1=2dλD
The new fringe width within water will be given by β2=2ndλD
So, β2=nβ1
Here, n is the refractive index of medium