Rapid groundwater depletion is one of India’s most pressing sustainability issues today. Groundwater depletion caused by irresponsible groundwater pumping has major regional food and water security implications. The present study has reviewed the groundwater potential, causes and effects of groundwater depletion, issues and challenges, initiatives taken for managing the groundwater, and the policies and regulatory framework of the Indian government. Annual extractable groundwater resource in India ranges from 393 to 411 billion cubic meters (bcm). Whereas the annual groundwater extraction for Irrigation, Domestic and Industrial uses in India ranges from 231 to 253 bcm. The percentage of the extraction of groundwater for irrigation, domestic, and industrial use is 87, 11, and 2%, respectively. Of the total assessment units in India, 11.23% of units in different States and Union Territories have been classified as Over-exploited. Delhi, Haryana, Himachal Pradesh, Punjab, and Rajasthan are the five states with the highest proportion of over-exploited units. The subsidy in electricity for farmers, dependency on groundwater for irrigation, uncontrolled extraction of groundwater by industrial and commercial sectors, lack of implementation of the policy and guidelines of the government, and lack of public involvement and awareness in groundwater management are the factors responsible for the depletion of the groundwater resources in India. The learning and outcomes of the study would be helpful for the researcher and the policymakers.