The adoption of micro-irrigation projects has resulted in water saving, yield and income enhancement at the farm level. However, the overall impression is that they are capital-intensive and suited to large farms. In this context, a study was undertaken in nine states, mainly to examine the actual area covered compared to the potential area and to understand the adoption level of mi as well as to analyse the cost and returns under different farm categories. The results indicated that only about 9% of the mi potential is covered in the country.

The second report in GSI's series measuring irrigation subsidies provides the starting point for a debate on the use of irrigation subsidies in India. Subsidies to irrigated agriculture in major irrigation projects in just the four south Indian states (Tamil Nadu, Andhra Pradesh, Karnataka and Kerala) were conservatively estimated at US$575 million per year from 2004 to 2008.