As the countries of the Global South embark on industrialization, those of the Global North are shifting out their manufacturing units, seeking cheap labour and raw materials while aiming to reduce carbon emissions and natural resource depletion. However, production and processing entail significant water consumption, leading to extensive virtual water trade (VWT). Studies reveal the negative impacts of exporting virtual water (VW) on national sustainability. With India exporting 26, 000 million litres of VW between 2006 and 2016, it could be headed for a water scarcity within 300 years. This article examines VW trade using case studies from the Eastern Himalayas, focusing on its impact on local communities. The depletion of freshwater resources has been widely felt across the region, resulting in significant social and economic changes, with the situation further complicated by VWT. This article examines how the VWT market contributes to the disruption of water accessibility for indigenous communities and how their interests can be safeguarded in this context. Furthermore, the article discusses India’s dilemma as it strives towards its ambitious goal of becoming a 5 trillion economy. It raises important questions about how India can navigate the path of sustainable development while balancing economic growth with the urgent need to limit global temperature rise to below 2°C. The analysis suggests that without careful management, the pursuit of economic development could exacerbate the challenges faced by indigenous communities and further entrench inequities in global water distribution.
Sharma et al. (2025) studied this question.