India has a territory of 328 million hectares, which receives an average annual rainfall of 120 cm; this is among the highest for a comparable geographical area in the world. Despite India’s vast water resources, droughts and famines are a common occurrence in many parts of country. This paper briefly surveys India’s river-basin systems, drought-prone areas, hydrogeological systems, groundwater potential and utilization in light of water-quality constraints, and environmental pollution in India. This paper concludes by clarifying the main actions required to ensure a sustainable development of water resources in India.