Bt.cotton under different irrigation schedules, to assess the effect of drip irrigation schedules and fertilizer levels on spectral reflectance of Bt.cotton, to assess the water use efficiency and ecomic feasibility of drip irrigation system for Bt.cotton. The cotton (BT. Bunny), w a popular variety having good fibre quality for present study. The drip irrigation scheduled at 0.5 PE is better in regards with the growth attributes of Bt.Cotton viz., plant height, number of functional leaves, leaf area, number of squares per plant, number of green balls per plant. Application of 125% RDF improves growth characteristics of Bt.Cotton. Drip irrigation scheduled at 0. 5 PE with green gram as inter crop gave highest water use efficiency whereas drip of 0.5 PE depth with green gram as intercrop and 75% of RDF gave highest fertilizer use efficiency. RVI and NDVI at 60DAS shows that, RVI and NDVI were higher in 0.5PE (I2). Drip irrigation of 0.5 PE with green gram as intercrop produced significantly higher seed cotton equivalent yield. However, the highest GMR, NMR and comparatively higher B: C ratio is obtained if drip irrigation is scheduled at 0.5 PE with75% RDF.