Disparities-Inefficiencies & Implications Re-visiting Irrigation Subsidies for Sustainable Water Use in India

India’s irrigation subsidies, originally designed to enhance agricultural productivity for over 45% of the population reliant on a sector contributing merely 15-17% to national GDP, have instead entrenched a debilitating fiscal trap. Recovering just 10-15% of operation and maintenance (O&M) costs while depriving the revenue of ₹2 lakh crore annually, these mechanisms impose unsustainable burdens on state budgets—exceeding 20% in Punjab alone. This comprehensive study critically dissects their design flaws, delivery bottlenecks, and far-reaching impacts through a qualitative, analytical-descriptive lens, synthesizing secondary data from authoritative government reports (NITI Aayog 2024, MoWR 2024), World Bank analyses, peer-reviewed journals, and policy briefs. Primary insights from fieldwork at Punjab’s Sutlej Canal off-take points in Bathinda—featuring stakeholder interviews with irrigation officials, Water Users Association (WUA) members, and farmers—illuminate ground-level realities of canal management, cropping distortions, and socio-political barriers. Key findings expose systemic failures across six critical domains. First, regressive benefit distribution channels 40% of fertilizer subsidies to the top 10% large farmers, systematically excluding 70% marginal smallholders. Second, chronic inefficiencies plague canal systems, with >50% conveyance losses and