Agriculture is an integral sector of the global economies and is the backbone of many developing economies, particularly in India. This sector is contributing significantly to the gross domestic product and employment generation. According to the Economic Survey 2022–23, the gross value addition of the agricultural sector to national income has been recorded as 18.3% at current prices. It is also observed that there was a huge decline in the share of gross domestic product by agricultural production from 55.41% to 17.8% in 1950–51 and 2020–21 respectively. The agricultural output has declined over the last few decades as the industrial and service sectors have seen a robust improvement. The lack of agrarian finance is one of the various problems of the farm sector in discouraging agricultural activities. This study aims to identify the significance of agrarian finance on rural development in India and analyse the impact of agricultural finance on farmers in India.