Agriculture has historically played a central role in India’s economic development by contributing to national income, employment generation, food security and rural livelihoods. However, the sector has undergone significant structural transformation since independence. This study examines the changing contribution of agriculture to employment and Gross Domestic Product in India from the 1950s to 2021. The analysis is based on secondary data obtained from government reports, national accounts, NSSO and Periodic Labour Force Survey data, RBI publications, state economic surveys and reports of international organisations. The study reveals that agriculture’s share in India’s GDP declined from approximately 52 per cent in 1950–51 to around 15–17 per cent in recent decades. In comparison, the decline in agricultural employment has been relatively slow, resulting in a substantial gap between the sector’s output contribution and workforce dependence. This imbalance indicates low labour productivity, disguised unemployment, seasonal underemployment and limited availability of productive non-farm employment. The study also highlights substantial regional variations through the cases of Punjab, Kerala and Bihar. Punjab represents high-productivity and irrigation-intensive agriculture, Kerala reflects a service-oriented economy with limited dependence on farming, while Bihar continues to exhibit high agricultural employment and relatively low productivity. Major policy interventions such as the Green Revolution, economic liberalisation, MGNREGA, minimum support prices, crop insurance and agricultural income-support programmes have improved production and rural security, but have not fully addressed structural employment problems. The COVID-19 pandemic further demonstrated agriculture’s resilience, as the sector recorded positive growth despite contraction in the overall economy. The study concludes that sustainable agricultural development requires productivity enhancement, crop diversification, climate-resilient farming, market reforms, improved rural infrastructure and accelerated creation of manufacturing and service-sector employment to absorb surplus agricultural labour.