Rainfed areas play a vital role in India's agriculture as they provide livelihood to 60% of the country's population and contribute substantially to its GDP. The productivity of rainfed areas is adversely affected by the increasing variability in rainfall. Climate change over the past few years has made rainfed agriculture precarious, with the impact being most harsh on small farmers. Rainfed area programmes implemented by the Governments over the last few decades to increase their productivity resulted mainly in increasing access to groundwater which are more beneficial to farmers who could afford them and less to those who depended solely on rainfall. These developmental initiatives are also not sustainable where governance systems are not strong. In contrast, there are well documented case studies across the country of rainfed crops being protected by the sustainable use of groundwater during critical dry spells. This paper reviews recent literature on rainfed agriculture, climate change and groundwater, with focus on productivity, sustainability and innovation to protect rainfed crops with limited groundwater resources. If the lessons learned from such experiments are incorporated into the design of rainfed area development programmes, greater benefit would accrue to rainfed areas and its farmers.