Authors: Kaushik Kumar Pati, Srijan Shashwat and Apoorva Gulati

First, Second and Third Author Affiliation: Department of Economics and Finance, Birla Institute of Technology and Science, Pilani – Pilani Campus.

 

Abstract: Virtual water is a concept that refers to the amount of water used in the production of goods and services. It is a useful tool for understanding the water footprint of a product or service. Virtual water can be used to support sustainable development in water-scarce regions. The concept of virtual water can help us understand the impact of our consumption patterns on water resources. It can also help us identify ways to reduce our water footprint. For example, we can reduce our consumption of water-intensive products like meat and dairy. We can also support sustainable agriculture practices that use less water. Virtual water is an important concept for understanding the sustainability of our water resources and the impact of our consumption patterns on the environment. In the case of India, it has been shown in the past that we are headed to becoming a water-scarce region, unless we take strong steps in the direction of sustainability. Our study, with the help of pooled regression, found that in the period of 6 years between 2014 to 2019, India’s trade in rice and wheat (two most important agricultural products) caused a decline in water sustainability. If trade in virtual water is going from countries with lesser natural water endowment to countries with higher natural water endowment, then contrary to expectations, virtual water trade is indeed causing water scarcity rather than preventing it.

Keywords: Virtual water trade, Trade and sustainability, Water scarcity.