The study objectives were designed toenhance the state's capacity to assess long-termeffects of drought and increase resilience to drought risksat state, district, and community levels. The process fordevelopment of study objectives featured extensiveconsultation with affected sectors, and with state andnational programs that aim to address the effects ofdrought. The study aimed to: (i) develop a framework forsimulating long-term impacts of drought in drought-proneareas and at state levels; (ii) conduct risk assessments ofthe impacts under different scenarios; and (iii) assist theGovernment of Andhra Pradesh (GoAP) in development of astrategy for adapting to frequent drought and waterdeficits. During the study, a model was developed as apowerful tool for thorough drought risk assessments and forinvestigation of risk coping strategies and climatescenarios on crop yield and production. The model wascalibrated using local farming practices and crop selection(that is, rice, maize, jowar (sorghum), sunflower, andgroundnut,) in the eight selected districts. The reportpresents results at the district level. Challenges indetermining the economic impacts included: the slow onset ofdroughts that spread over long periods and large areas; thesignificant indirect losses; the need to link local impactanalysis with statewide analysis; and the linkages betweenthe different sectors and subsectors of the economy, theflow of goods and services and employment.