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Management of water resources is vital for sustainable development. However, management of water resources can be wholesome only if the aspect of virtual water is also addressed. Virtual water is the water that is required for the production of commodities. With the rise in global trade volume, there is an increase in virtual water exchange. Therefore, water is indirectly becoming a traded commodity. Initially, it was predicted that global market forces would direct the virtual water flows from relatively wet to relatively dry regions. However, currently, water-poor countries like India are becoming the major net virtual water exporters and water-rich counties like the UK are becoming net virtual water importers. It has become important to find management methods for virtual water for water-stressed countries. Policy interventions can play a key role in such management. This chapter aims to address the concept of virtual water and presents the role of policy intervention in virtual water management. Case studies of countries with successful management of virtual water are presented and evaluated critically. Lastly, recommendations for efficient virtual water management will be presented for the Indian scenario.

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