While progress has been made on quantifying virtual water flows between countries, there exists little information on virtual water trade within large countries like India. This paper presents the results of two MSc theses which quantify and critically analyze inter-state virtual water flows in India in the context of a large inter-basin transfer plan of the Government of India.
Our analysis shows that the existing pattern of inter-state virtual water trade is exacerbating scarcities in already water scarce states and that rather than being dictated by water endowments, virtual water flows are influenced by other factors such as “per capita gross cropped area” and “access to secure markets”. We therefore argue that in order to have a comprehensive understanding of virtual water trade, non-water factors of production need to be taken into consideration.