Arid districts such as Kutch in Gujarat, and Barmer and Jaisalmer in Rajasthan mainly have livestock economies and it is not unusual to see thousands of animals-goats, cows, sheep, buffaloes and camels-moving amiably along in search of the next watering hole. It seems counter-intuitive that areas with such low rainfall should provide neighbouring states with meat and milk. IWMI (the International Water Management Institute) has done unique research to show how there is a massive export of virtual water from dry regions to wet through the sale of these products, leaving open some interesting questions on policy.
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Source: http://www.livemint.com/2009/07/02205545/A-fine-ba
Population pressure and increasing water competition in a changing climate require us to take stock of the availability and use of water across scales. Water availability not only influences farmers’ commercial prospects but also irrigation-related enterprises and agri-businesses. Greater water scarcity could jeopardize irrigation and agricultural markets while excessive water use can lead to declining ecosystems, water quality and soil health. IWMI advises development partners and the public and private sectors on all aspects of water resource availability and use through a variety of advanced modeling and remote-sensing products and tools, including 
The ability of farmers to engage in or expand irrigation depends on the prevailing socioeconomic, ecological and political contexts, which are often complex, non-linear and changeable. Overcoming systemic barriers to farmer-led irrigation development while taking advantage of existing opportunities 
A lack of affordable credit, particularly for women and resource-poor farmers, is one of the main barriers to expanding farmer-led irrigation in low- and middle-income countries. But 
Scaling farmer-led irrigation requires strengthening human capacity and knowledge exchange among all actors and stakeholders involved. IWMI takes an action research approach, working with national and international research institutions, governments, extension agents and public and private organizations to co-develop the scaling ecosystem and strengthen capacity to drive scaling networks and collective action. We support the