Rainfall is the major source for groundwater recharge in basins areas of central region of India. Now a day, the river basins are experiencing acute shortage of water which has resulted in lowering of groundwater level and drying up of water bodies. In order to maintain water sustainability; a composite hydrologic index was developed in the Betwa basin of Madhya Pradesh and Uttar Pradesh states, India. The index was developed using principal component analysis through hydrologic, topographic as well as geographic parameters derived from the Soil and Water Assessment Tool and MODFLOW model. The geomorphological parameters were categorized, on the basis of groundwater recharge potential and weight ranged from 1 to 4. The geomorphologic parameters, that is, soil type (T), slope (S), runoff ratio (R), and evapotranspiration (ET) were integrated into a single indicator of composite hydrologic index. Soil type and ET were the major factors that directly affected the groundwater recharge. These two parameters together explained 86% of total variability in the data. Based on the analysis of the four parameters that affected groundwater recharge, composite hydrologic index (CHI) was classified into very good, good, moderate, and low grade. The CHI was statistically validated using standardization methods. The index was developed as a water management tool to measure a sustainability state relative to a groundwater recharge potential, which allows for spatial and temporal comparison. This index will be helpful in natural resource management and will improve socioeconomic status of human population inhibiting in the semi‐arid region.