This research focuses on the assessment and measurement of farm income in India through the lens of trends, determinants, challenges and policy implications. The authors take a broader view of measuring farm incomes by not only looking at production; they also define farm incomes as multi-dimensional indicators of income consisting of crop and livestock earnings, as well as non-farm earnings, government subsidies, and imputed values of family labour and self-consumed goods. This research uses descriptive-analytical-based methodology and relies on secondary data from various sources, including NSSO, NSO, and NABARD, to analyse historical income data, regional discrepancies in farm incomes and limitations of the income structure. Based on the findings, farm households earn low and unstable incomes, and there are significant discrepancies between states and farms of varying size. Rising agricultural input costs, price volatility (due to international trade), small land parcels and climate-related risk factors all limit the potential for growth in farm income. Increased levels of income were driven by three factors: diversification; access to non-farm employment; and improved access to markets. Finally, this research describes the various obstacles associated with measuring farm income, including (1) data gaps; (2) issues with measuring value; and (3) variations in farm income. Therefore, a standardised, comprehensive multi-dimensional framework must be established to measure farm incomes accurately and effectively design policies to aid farm incomes in India. The authors discuss some recommendations for policies to increase farm income, including: (1) reducing production costs; (2) reforming market structure; (3) diversifying into non-farm produced; (4) providing institutional assistance; and (5) enhancing the availability of accurate information about farm earnings to develop sustainable and inclusive agricultural development in India.