Climate change creates major economic challenges, particularly for India, where agriculture and natural resources are vital in income and employment. Changes in climate patterns like unpredictable rainfall, increasing temperatures, and severe weather affect crop production and the availability of resources. This paper looks into the impact of these changes on India's agricultural sector, water resources, and the economic disparities between regions. Almost half of India's population relies on agriculture, so changing climate conditions have a direct effect on productivity and the incomes of farmers. Important crops such as rice and wheat are especially at risk, resulting in lower yields, increased production expenses, and worries about food security. Climate change makes water scarcity worse because higher temperatures and erratic rainfall reduce the water sources that are crucial for both irrigation and drinking. The rising pressures lead to higher costs for managing water resources and worsen regional inequality. Wealthier areas can adapt more easily through technological investments, whereas poorer regions encounter more significant challenges. The paper looks into climate adaptation strategies like climate-smart agriculture, water conservation, and renewable energy, which can help bolster economic resilience. These practices, together with supportive government policies, are crucial for reducing economic risks associated with climate change. This study seeks to tackle these challenges and offer valuable insights for policymakers focused on creating a sustainable and climate-resilient economy.