The performance of Azophos with different levels of NPK fertilizers on the rice variety PMK 3 was assessed under irrigated, semidry and rainfed field conditions. Growth and yield of rice were more by the application of recommended dose of NPK fertilizers, than those for the Azophos inoculation under irrigated condition. However, Azophos effected more growth, yield, nutrient content of PMK 3 than those of the recommended doses of NPK fertilizers under semidry, and rainfed condition i.e. under the water stress situations. The results concluded that Azospirillum produced growth hormone and Phosphobacteria increased root biomass through phosphorus solubilization, which gave drought tolerance to the plant under stress conditions.