Limited and declining water resources, increasing demand of water
resources from different sectors has posed a major challenge for
maintaining water sustainability and thus overall sustainability for a
populous and water scarce country like India. Over extraction and
changing climate have put additional pressure to maintain water
sustainability. Therefore, there is a need of proper planning of
utilization and management of water resource. Recently, virtual water
trade has received much attention and become important tool for
balancing the water budget. On the other hand, virtual water trade has
become a threat that can adversely effects water balance of exporter's
country as well as economy. Analysis of virtual water trade with its
implications on water resources are missing, there is a need of such
analysis that will help in management of water resources. We present a
quantitative analysis of virtual water trade and its implications on
water sustainability. We have considered rice crop only due to its
characteristics as rice is major water consumer and water exporter crop
of India