The phenomenon of ‘globalisation of water’ (A. Y. Hoekstra & Hung, 2005) talks about the importance of recognizing the adverse effects on local freshwater resources from a global perspective. The trade of water through the export and import of products results in ‘virtual water flows’ (Arjen Y. Hoekstra & Mekonnen, 2012), which leads to many counties externalizing their water footprint with serious consequences leading to water stress, scarcity and pollution elsewhere. Lenzen et, al. talks about the trade of scarce water through water-intensive crops and their consequences on water stress in exporting regions (Lenzen et al., 2013). This leads to a vicious circle of water stress which has several impacts on the environment and society. However, the extent of these impacts is not fully researched. This thesis hopes to investigate the spatial, socio-economic, and environmental impacts that are associated with the virtual water trade of cotton from India, and how they can be improved to obtain a sustainable and balanced water footprint in water-scarce regions.