India is the world’s largest groundwater user and current regime of power subsidy without metering is often thought to be the main reason for such rapid growth in groundwater use. Agriculture, groundwater and electricity sectors in much of India are now bound in nexus of mutual dependence where the growth in agriculture sector is being supported by unsustainable trends in groundwater and electricity sectors. All three components of the nexus – groundwater, electricity and agriculture – are state (provincial) subjects and as such only state governments can legislate on these issues. Different states in India have adopted different ways of managing this nexus. This paper describes the divergent experiences of groundwater management through electricity policies in two Indian states, Karnataka and Punjab. Both states face severe problems of groundwater over-exploitation and their electricity utilities are saddled with huge losses. Yet, they have managed this conundrum differently, showing that political will is needed to tackle the wicked problem of water-energy-food nexus in India.