Water is a basic element of life and plays an important role in sustaining ecosystems and human societies. Despite its plenitude, many countries face severe water shortages, exacerbated by factors such as population growth, industrialization and climate change. The concept of virtual water – water embedded in the production of goods, particularly agricultural products has emerged as a significant aspect of international trade, offering a potential solution to global water scarcity. This paper explores the implications of virtual water trade distinguishing from real water and its impact on the environment and water crises, particularly in India. India as a major exporter of virtual water faces challenges related to water depletion and environmental degradation raising questions about the sustainability of the current practices. This paper critically examines existing international and national legal frameworks, identifying the gaps and proposing the necessity of a legal mandate to regulate virtual water trade. Ultimately this paper calls for a balanced approach to virtual water trade, aligning economic benefits with environmental sustainability and equitable access to water resources.
