Groundwater is a critical resource for agriculture in India, supporting nearly 60% of the country’s irrigation needs. However, the relentless exploitation of groundwater for farming has led to alarming environmental and socio-economic consequences. This paper explores the extent of groundwater exploitation in Indian agriculture and its cascading effects on ecosystems, rural livelihoods, and sustainable development. Over-extraction has resulted in declining water tables, reduced aquifer recharge rates, and increased energy consumption for water pumping, contributing to climate change. Additionally, groundwater depletion exacerbates soil salinity, impacts crop productivity, and threatens biodiversity in groundwater-dependent ecosystems. The study analyzes regional disparities in groundwater use, highlighting the severe crisis in states like Punjab, Haryana, and Rajasthan, where water-intensive crops dominate agricultural practices. It evaluates the role of government policies, subsidies for electricity and irrigation, and farmers’ reliance on high-yield practices as key drivers of unsustainable groundwater use. Furthermore, the paper discusses alternative strategies such as the promotion of water-efficient technologies (e.g., micro-irrigation), crop diversification to less water-intensive crops, and community-based water management systems. This presentation represents a multi-stakeholder approach to tackling groundwater exploitation, balancing agricultural productivity with environmental sustainability. The findings advocate for policy reforms, education for farmers, and collaborative efforts to conserve groundwater resources, ensuring long-term agricultural resilience and ecological balance in India.