Effective management of water resources is crucial for sustainable development in any region. When considering computer-aided analysis for resource management, geospatial technology, i.e., the use of remote sensing (RS) combined with Geographic Information Systems (GIS) proves to be highly valuable. Geospatial technology is more cost-effective and requires less labor compared to ground-based surveys, making it highly suitable for a wide range of agricultural applications. Effectively utilizing the timely, accurate, and objective data provided by RS technologies presents a crucial challenge in the field of water resource management. Satellite-based RS measurements offer consistent information on agricultural and hydrological conditions across extensive land areas. In this study, we carried out a detailed analysis focused on addressing agricultural water management issues in India through the application of RS and GIS technologies. Adhering to the Preferred Reporting Items for Systematic Reviews and Meta-Analysis (PRISMA) guidelines, we systematically reviewed published research articles, providing a comprehensive and detailed analysis. This study aims to explore the use of RS and GIS technologies in crucial agricultural water management practices with the goal of enhancing their effectiveness and efficiency. This study primarily examines the current use of geospatial technology in Indian agricultural water management and sustainability. We revealed that considerable research has primarily used multispectral Landsat series data. Cutting-edge technologies like Sentinel, Unmanned Aerial Vehicles (UAVs), and hyperspectral technology have not been fully investigated for the assessment and monitoring of water resources. Integrating RS and GIS allows for consistent agricultural monitoring, offering valuable recommendations for effective management.