<p>Groundwater drought is caused by reduced recharge from deficient rainfall, affecting water availability and regional economic activities. A newly proposed modified groundwater drought index (MGWDI) was evaluated and compared with the conventional groundwater drought index (GWDI) using seasonal groundwater level data from the Shipra river basin in Central India. A new MGWDI demonstrated a stronger correlation with droughts derived from the standardized precipitation index (SPI) at a 9-month and 12-month timescale compared to the conventional GWDI. The new MGWDI has resolved the discrepancy of underestimating groundwater deficit in overexploited areas, as seen in the case of the conventional GWDI. The SPI-12 was found to be more effective than SPI-9 in the prediction of groundwater droughts. The SPI-12 for the month of November was found to have the strongest correlation with groundwater droughts, making it useful to predict such events. The frequency of meteorological droughts in the Shipra river basin occurs approximately once every five years; consequently, according to the new MGWDI, it leads to hydrological droughts almost every four years. The post-monsoon groundwater level data performed better at interpreting groundwater droughts in close correlation with meteorological drought indices as compared to the pre-monsoon groundwater level data. The new MGWDI is recommended for a more precise assessment, monitoring, and mitigation planning of groundwater droughts.</p>