The micro irrigation in general and drip irrigation in particular has received considerable attention from policy makers, researchers, economists etc. for its perceived ability to contribute significantly to groundwater resources development, agricultural productivity, economic growth, and environmental sustainability. In this paper, the impact of drip irrigation has been studied on farming system in terms of cropping pattern, resources use and yield. The drip method of irrigation has been found to have a significant impact on resources saving, cost of cultivation, yield of crops and farm profitability. Hence, the policy should be focused on promotion of drip irrigation in those regions where scarcity of water and labour is alarming and where shift towards wider-spaced crops is taking place.