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Remote sensing data from Indian geostationary satellites (Kalapana-1, INSAT 3A) were used for the first time for early warning of agricultural drought and forewarning of crop vigour. An Early warning indicator (EWI) was developed from operational product of rainfall and reference evapotranspiration from observations of Kalpana-1 very high resolution radiometer (VHRR). The effectiveness of EWI was evaluated for the two drought years (2009 and 2012). The positive correlation (r = 0.66-0.68 for 2009 and r = 0.64-0.70 for 2012) between the