Agriculture continues to play a vital role in India’s economic development by contributing significantly to gross domestic product, employment generation, and food security. Despite structural shifts toward industry and services, a large proportion of the population still depends on agriculture for livelihood, making policy support crucial for sustaining productivity and farm incomes. In this context, agricultural subsidy schemes particularly equipment and mechanization subsidies have emerged as important policy instruments to enhance efficiency, reduce labour dependence, and promote the adoption of modern technologies. The present study examines the Impact of Agricultural Subsidies on Production: A Case Study of Bagalkot District in Karnataka State. The study adopts both descriptive and analytical approaches and is based on primary and secondary data. Primary data were collected from 384 beneficiary farmers using a simple random sampling technique through a structured interview schedule, while secondary data were sourced from government reports, economic surveys, and published literature. The analysis focuses on major equipment subsidy schemes such as SMAM, RKVY, PM Kisan Tractor Yojana, and NABARD loans. The findings reveal that agricultural equipment subsidies have significantly contributed to increased crop production, reduced labour costs, saved time in farming operations, and improved market access for farmers. A majority of respondents strongly agreed that subsidies helped enhance productivity and operational efficiency. The study also highlights the predominant use of subsidized equipment for land preparation and harvesting activities. Despite the positive impact, issues related to awareness, accessibility, and procedural delays persist. The study concludes that agricultural equipment subsidies play a crucial role in improving farm productivity and farmers’ socio-economic conditions in the study area, and it suggests strengthening awareness campaigns, simplifying procedures, and ensuring inclusive access for small and marginal farmers to maximize policy effectiveness.