Global climate change has intensified drought impacts in arid regions, posing significant threats to ecological and socioeconomic stability. This study presents a comprehensive assessment of drought dynamics in Kachchh District, Gujarat, India, using 53 years (1970-2022) of rainfall data from nine meteorological stations. Multi-temporal Standardized Precipitation Index (SPI) analysis revealed pronounced spatial heterogeneity in annual rainfall (363.6-522.7 mm), with coastal stations receiving higher precipitation than interior regions due to topographic and climatic influences. Modified Mann-Kendall trend analysis indicated encouraging recovery trends in moisture availability over the past two decades, despite persistent rainfall volatility. Drought propagation analysis identified three distinct pathways, with 100% of meteorological droughts cascading into agricultural and hydrological droughts. The Meteorological -> Agricultural pathway exhibited a mean lag of 3.02 months, whereas the Agricultural -> Hydrological and direct Meteorological -> Hydrological pathways showed longer lags of 4.95 and 6.81 months, respectively. A novel contribution of this study is the quantification of agricultural buffering in true arid environments, with a 17% reduction in drought severity during propagation from meteorological to agricultural stages. The Meteorological -> Agricultural pathway emerged as the optimal early warning indicator, offering a 1-2-month lead time with high correlation (r = 0.75-0.80). Extreme value analysis using the Generalized Extreme Value distribution estimated return periods of 10-25 years for severe droughts (SPI-12 < - 2.0), with marked spatial variability. These results support the implementation of real-time, multi-scale drought early warning systems and region-specific water management strategies, providing critical guidance for climate adaptation planning in arid landscapes.