Global Supply Chains are Becoming Conducive to Water Saving in India

India is an emerging region in global socioeconomic development and international trade and has the largest freshwater withdrawals worldwide. India’s water use is affected by changes in domestic and foreign socioeconomic development. However, socioeconomic driving factors of India’s water use in the context of global supply chains have not been investigated. This study explored the impacts of domestic and foreign socioeconomic transitions on water use in India during 1995–2020. Results show that the effect of the change in water use intensity on reducing India’s water use has gradually diminished and even led to water use increments in recent years (+11 billion m3 (BCM) during 2010–2020). Notably, the changes in global economic structures show significant potential for water saving in India (−15 BCM during 1995–2020). The change in the domestic final demand structure was a critical factor contributing to water saving in India (−58 BCM during 1995–2020). In particular, the changes in production structures (both domestic and foreign) and foreign final demand structures have shifted from contributing to India’s water use increments to water use reductions. This study highlights the importance of global economic structure optimization and international cooperation for water savings in India.