Andhra Pradesh is one of the leading states in India with respect to irrigation subsidies—with significant investments in irrigation infrastructure development, the provision of free electricity for irrigation and the ongoing development of large-scale irrigation support programs. The level of irrigation subsidies in the state has increased from INR428 million (US$9.56 million) in 1980–81 to INR8,402 million (US$187.75 million) in 1999–2000 (Reddy, 2003). From 2004 onward, the Government of Andhra Pradesh (GoAP) launched the Jalayagnam Program (Water Infrastructure Development Program), prioritizing the development of irrigation
infrastructure. The aim was to create a new command area of 4.45 million ha by investing INR1,662,630 million (US$37,153.74 million) by the year 2014.
The objectives of the study included: i) assessing the application of a common method for measuring irrigation subsidies in order to develop accurate, replicable and reliable subsidy estimates and ii) providing policy advice aimed at improving and standardizing the reporting of data on irrigation subsidies.