This study focuses on the dryland wheat areas of central and southern India (over half of India's total rainfed wheat area), where wheat is produced on deep vertisols in a fallow wheat system depending heavily on the conservation of monsoon rainfall. Although wheat yields have increased more slowly in dryland areas than irrigated areas, perhaps half of the dryland wheat area is planted to improved varieties (mostly tall, many of them durum wheats) possessing superior drought tolerance, rust resistance, and high quality grain which fetches a price premium. Fertilizer use remains low. Research resources appear to have been allocated to dryland wheat in accordance with its relative importance in total production, but the declining importance of dry land wheat may suggest that less priority be given to wheat research in this environment in the future. However, the close association between the incidence of poverty and dependence on dry land agriculture may justify further research in dry land areas. Consideration should also be given to interactions between favored (irrigated) and marginal (dryland) areas occurring through food and labor markets. Finally, although progress in breeding research may be slow because of the difficulty of the target environment, progress in crop and resource management research may be more rapid. Developing better moisture conservation practices is clearly a research priority, given the limited groundwater supplies for irrigation.