Punjab (a farming-dominant state in northwestern India) is extracting groundwater at 152% of its replenishment rate, with 72% of its blocks classified as critically over-exploited — the highest proportion of any Indian state, according to the 2025–26 Dynamic Groundwater Assessment. As water tables fall, wealthier farmers with capital to drill deeper tube wells are drawing larger volumes, while smallholders unable to afford the equipment are forced to purchase water from larger landowners, widening the economic divide. Analysts urge Punjab to redirect electricity subsidies toward smallholder support and collective irrigation infrastructure, arguing that welfare benefits tied to individual cultivators rather than landowners or pump owners would curb extraction while protecting the most vulnerable farmers.