The Invisible Currents of Consumption: Water Footprints, Trade, and the Urgency of Conservation

“Conserving water isn’t just about turning off the tap, It’s about analyzing one’s water footprints”

Introduction

Water scarcity is one of the most pressing global issue that has taken over the debate in the backdrop of hydro-logical stress. Water covers almost a staggering 70% of our planet’s surface of which, only 3% of the world’s water is freshwater, and two-thirds of that is tucked away in frozen glaciers or otherwise unavailable for our use.[1] In such a Aqua deficit condition,  mechanical depletion of water resources by Virtual water trading adds an additional layer to the multidimensional problem. When we think about water conservation, we often focus on the direct methods for conservation like turning taps offs, however, water is also consumed indirectly by the usage of products in which water is embedded. This is  the concept of water footprints that an individual may account for.

For the production of every commodity in the market-driven world, the usage of water in an unsustainable manner to maximize profits has led to exploitation of freshwater. This reckless consumption has made water scarcer than ever, exacerbating the water crisis specially in the countries that rely on imports of goods due to water scarcity. The capitalistic disruption of water ecosystem and unchecked virtual water trade necessitates the urgency of implementing sustainable water management policies and need of water conservation at both macro and micro level.

Virtual Water Trade 

When goods and services are exchanged, or traded, between countries so is virtual water, or the water used in the production of those goods/services – this is the concept of Virtual Water Trade (VWT).[2] For example, for producing a kilogram of grain, grown under rain-fed and favorable climatic conditions, we need about one to two cubic metre of water, that is 1000 to 2000 kg of water.[3] On the contrary growing same amount of crop in an arid region takes additional amount of water due to high temperature and high evapotranspiration. This creates an opportunity for the water abundant country to trade water intensive goods with water deficit country. Through this exchange between the countries, it is considered they are exporting water in a virtual form which creates a bridge between the water footprints of production to footprints of consumption. And hence this becomes a point for profit maximization of the water abundant country which further creates hurdles in water conservation by exploiting the freshwater.

Impact of Virtual Water Trade on Water Scarcity

Virtual Water Trade (VWT) has been a tool for globalization of freshwater, intended towards creating sustainable water network across the globe. However, this approach does not remain out of the purview of paradoxes. India which is second largest producer of rice, accounting for 22% of worlds rice production, produced almost 172 million tonnes of rice in the year 2018. On an average, 5,600 litres of water is consumed in producing 1 kg of rice, while China does the same using 355 litres.[4] This highlights the inefficient usage of water in case of India. India is the host to the largest population of the world (of which at least 60% are a rice consumers), with an availability of worlds 3.83% freshwater. It is observed over the year an increasing trend in water demand for production of rice to meet increasing demand. While per capita water availability has reached a critical level of 1,486 m³, less than 1,700 m³ (standard per capita water requirement), there is a declining trend in per capita water availability.[5] This figures shows an alarming situation of India marking a potential shift from water stressed nation to a water scarce nation. Over extraction of water for this trade depletes the underground water of a country as in the case of India. With increasing urbanization and water demand, the per capita water availability in the country has declined by almost 20% in the last two decades and is likely to decline by another 20% by 2050, making India a water-scarce country.[6]

Socio-Economic and Environmental Toll of VWT

Virtual Water Trade (VWT) is a double edged sword that protects in the short run and cuts in the long run. Though in the short run it can be an instrumental way of protecting water scarce nations, however, this can never be a silver bullet due to its telecoupling effect. VWT can be seen in terms of telecoupling where water is virtually traded and has its chain of effects domestically and globally. This has both positive and negative outcomes but in the recent trend has been seen in the negative limelight because approximately 16% of unsustainable water use and 11% of global groundwater depletion are virtually traded.[7] Some of the other reasons that can be observed due to VWT are:

• Depletion of Groundwater – The globalization in order to meet the demand has constantly led to unjust depletion of groundwater. Specially in areas like agriculture where foodgrain crops are heavily exported to water scarce country. Globally, roughly 52% of the blue water footprint is deemed unsustainable, and around 15–17% of this unsustainable portion is traded virtually[8].
• Food Security Crisis – While globalization of water trade solves regional famines in a short run but also mimics the possibility of impacting the water supply needed for domestic food producting. If a country heavily exports it indirectly trade offs its local needs which could otherwise be used for domestic production. This necessitates a delicate balance between economic gains from export and local needs.
• Environmental Degradation – The main environmental costs of agricultural production are associated with soil and water pollution from pesticide applications and fertilizer overuse, as well as groundwater depletion, land use change, habitat destruction, and soil erosion.[9] This environmental damage can be accounted in terms of grey water footprints. However, wealthy importing country often import the goods but the exporting country has to externalize the damage that has been caused. For example if USA produces ‘X’ crop in which they have utilized pesticide which has caused irreversible harm to the soil for future use, then this harm stays in USA. This problem is aggravated by the export subsidies and profit maximization affecting the environmental sustainability.
• Policy and Governance Issue – VWT creates a disconnect between the actual consumption that has occurred within the domestic boundary and the export that is virtually done. This creates a difficult problem in creating a mechanism for calculating water footprints. This is aggravated by the less stringent laws which a developing country might have incentivizing the big companies to set up industries within their local jurisdiction thus disrupting the market for local labors.

Solutions for Conserving Water

Water conservation in the light of this obscured dilemma requires a multifaceted approach inclusive of both strong statutes and individual awareness. Addressing this issue would necessitate balancing global trade dynamics with an efficient water resource management. Some of the aspects that a country can look into for ensuring water conservation could be:

• Initiating Water Labeling – Water labeling would give consumers information about the ‘water footprint’ of a given good or product.[10] This strategy could make a consumer conscious about their water footprint since such information are technical for an ordinary consumer to know, it becomes reasonable to provide such details. This could potentially make individuals aware about water footprint and create a conscious consumer.
• Incorporation of Water Sustainability into Trade Agreements – By incorporating water sustainability into trade agreement it will create a legal obligation upon the parties to use sustainable way while utilizing water resources. By this the agreement may include specific clauses for standard environment protections while also facilitating cross boundary water collaboration efforts reducing potential conflict (specially in terms of river crossing more than one nation).
• Data Transparency and Water Footprint – Government should focus on mapping water footprints of each industry in terms of green, gray and blue water footprints. Including the water used in the process alongside the water that has been wasted should be accounted for. Utilizing various water assessment tools could calculate and map the water footprint, assess its sustainability and identify strategic actions to improve the sustainability, efficiency and equitability of water use.[11]
• Adoption of Water Efficient Technology – Encouraging a shift towards more efficient and sustainable alternative should be an ideal approach for a country like India which faces backlash from overuse of water. This could utilize water in a efficient manner while giving almost same output.

Conclusion

The water crisis, fueled by the obscured problem of VWT, showcases a stark reality: where water crisis is not just a micro problem but requires a multifaceted macro approach. While VWT offers short-term reliefs, its long term has economic and environmental cost—depleted aquifers, degraded ecosystems, and deepening inequalities. In order to transcend into a water secure future, it requires both collective and individual efforts, mandating collective consciousness into what one consumes. It becomes imperative in recognizing that each good creates a water footprint and that in the advent of urbanization and climate sensitive world we must counter water crisis by seeing trade through the lens of sustainability. The time to act is now — before the planet runs dry.

[1] World Wildlife Fund, ‘Water Scarcity’ <https://www.worldwildlife.org/threats/water-scarcity> accessed 1 April 2025.

[2] Maithri Aquatech, ‘Virtual Water Trade’ <https://www.maithriaqua.com/post/virtual-water-trade> accessed 1 April 2025.

[3] Water Footprint Network, The Footprint Assessment Manual: Setting the Global Standard (Report No.11, 2011) <https://www.waterfootprint.org/resources/Report11.pdf> accessed 1 April 2025.

[4] Government of India, Press Information Bureau, ‘Goal of Bringing Piped Drinking Water to Every Household Will Be a Revolutionary Step: Union Jal Shakti Minister’ (20 August 2019) <https://pib.gov.in/PressReleasePage.aspx?PRID=1582469> accessed 1 April 2025.

[5] Shiv Narayan Nishad and Naresh Kumar, ‘Virtual Water Trade and its Implications on Water’ (2022) Water Science and Technology 22(2) 1704

<https://iwaponline.com/ws/article/22/2/1704/84269/Virtual-water-trade-and-its-implications-on-water> accessed 1 April 2025.

[6] The Energy and Resources Institute (TERI), Water Factsheet (June 2021)

<https://www.teriin.org/sites/default/files/2021-06/water-factsheet.pdf> accessed 1 April 2025.

[7] United States Geological Survey (USGS), Groundwater Depletion in the United States (2021) <https://pubs.usgs.gov/publication/70260627> accessed 2 April 2025.

[8] Lorenzo Rosa, ‘Trends and Environmental Impacts of Virtual Water Trade’

<https://www.researchgate.net/publication/385553973_Trends_and_environmental_impacts_of_virtual_water_trade> accessed 2 April 2025.

[9] Dodorico P, ‘Global Virtual Water Trade and the Hydrological Cycle’ (2019) 14(5) Environmental Research Letters 055017 (26 April 2019)

<https://mkonar.cee.illinois.edu/33_Dodorico_ERL_2019.pdf> accessed 2 April 2025.

[10] Edith Brown Weiss and Lydia Slobodian , ‘Global Water Governance and International Law’ (2014) Georgetown Law Faculty Publications

<https://scholarship.law.georgetown.edu/cgi/viewcontent.cgi?article=2634&context=facpub> accessed 2 April 2025.

[11] Water Footprint Network, ‘Interactive Tools’

<https://www.waterfootprint.org/resources/interactive-tools/> accessed 2 April 2025.