A total of 206 recombinant inbreed lines (RILs) derived from cross between drought susceptible genotype WL711 and popular drought tolerant genotype C306 along with checks (HD3043 and HD 2987) were evaluated in alpha lattice design with two replications under rainfed and fully irrigated conditions during rabi seasons, 2012-13 and 2013-14 at experimental farms of Indian Agricultural Research Institute New Delhi. Agronomical traits such as plant height (cm), spike length (cm), 1000-grain weight (g), grain yield (g plot-1), biomass (g m-2) and Harvest index were recorded along with physiological traits such as Normalized differential vegetative index (NDVI), Canopy temperature depression (CTD), chlorophyll content (SPAD-readings) at different phenological stages of crop growth. Analysis of variance revealed significant variability for all the traits studied. The overall population means yield reduction under rainfed condition was 40% significant differences for Genotype X conditions (rain-fed and fully irrigated condition) were observed among the RILs. The correlation and regression values were higher in rain-fed condition than the irrigated. Traits, such as 1000-grain weight, biomass, harvest index, CTD and NDVI showed significant correlation and regression values on grain yield under rainfed condition. These traits can be used as selection criteria to select genotypes suitable for water-deficit stress condition. The transgressive segregants superior to the drought tolerant parent C306 and checks were obtained. This study demonstrated the use of physiological traits as selection criteria to select genotypes for drought tolerance under field conditions.