Answer: Virtual water export is the export of ‘hidden’ water present in various products, such as textiles, machinery, livestock, and crops. Since all these products require water inevitably for their production. Thus, along with the commodity, water is also exported.

According to NITI Aayog, India exported more than 10 trillion litres of embedded or virtual water through the export of nearly 37 lakh tonnes of Basmati rice in 2014-15 alone.

As per Niti Aayog’s composite water management index, India is experiencing its worst water crisis in history. Virtual water export leads to depletion of water resources in India in the following ways:

•       Water intensive Agri-exports: India’s agri-export basket is dominated by water intensive crops like Basmati rice and marine fisheries. 

○       For example, India is the largest exporter of rice in the world.

•       Groundwater Depletion: India is the largest extractor of groundwater in the world of which a major goes for irrigation. 

○       For example, around 90 percent of India's groundwater is used for agriculture. .

•       Lack of Water pricing: Water is not suitably priced in India due to huge subsidies given by the government. Thus, water is undervalued in export commodities.

○  The same was highlighted by Mihir Shah Committee

•       Low water efficiency: India has a high-water footprint in the industrial sector. 

○       For example, as per the Ministry of Jal Shakti, the industrial plants in our countries consume about 2 to 3.5 times more water per unit of production compared to similar plants operating in other countries.

•       Crop Diversification: Agriculture accounts for more than 80% of consumption of freshwater resources. Thus, less water intensive crops should be promoted for export purposes. 

○       For example, Millets can be a good alternative as its demand is rising with growing awareness.

•       Promote Micro-Irrigation: Drip and Sprinkler irrigation can increase water efficiency in agriculture. 

○       For example, According to the Dalwai panel micro irrigation can lead to 40% water saving.

•       Regulate Groundwater: At present, groundwater ownership lies with the landowner under Easement Act 1882. A new legal framework should be brought wherein there should be a cap on groundwater extraction.
•       Water Harvesting: It should be promoted through revival of traditional groundwater resources through MGNREGA. Further, water harvesting should be made compulsory in big residential societies and government buildings.
•       Promote Community Participation: Community participation can lead to better resource planning and management. 

○        For example, Pani Panchayats were formed in Rajasthan for effective management of water resources.

•       Focus on Data: Virtual water should be quantified and there should be a cap on virtual water export after a certain limit.
•       Import water intensive crop: India should consider importing commodities with a high water footprint. 

○       For example, China is conserving water by importing water intensive crops like Soya.

Addressing virtual water export-related issues requires a multi-stakeholder approach that considers economic, environmental, and social factors. India needs to balance competing interests of increasing the exports and conservation of water resources by undertaking both demand and supply interventions.