This study was undertaken to assess the physical and financial performance of micro irrigation system in cultivation of horticultural and agricultural crops under Micro Irrigation Scheme (MIS) in Vijayapur district of Karnataka. Primary data were collected from 120 sample farmers in Vijayapur and Indi taluks. Secondary data were collected from Department of Horticulture and Agriculture, Vijayapur. For analysis of data compound growth rate and tabular presentation were employed. Area, disbursement of subsidy and beneficiary coverage showed significant growth rates of about 36, 38 and 34 per cent, respectively from 2004-05 to 2011-12. Clogging of emitters, poor quality of product, high cost of instalment, delay in sanctioning of loans and approval of subsidy and lack of technical support were some of the  problems faced by farmers in adoption of micro irrigation system. Since there are high dividends from micro irrigation, there is a need for larger quantum of subsidy especially for the small and marginal farmers. Procedures for approval and subsidy disbursement need to be simplified in terms of number of documents, number of days required for approval etc with the help of modern information and communication technology tools.