Agricultural finance plays a crucial role in sustaining and modernizing Indian agriculture, ensuring food security, and enhancing rural livelihoods. With nearly 42% of India’s workforce engaged in agriculture and the sector contributing around 18% to the GDP, access to adequate and timely credit remains vital. Over the years, institutional credit to agriculture has witnessed substantial growth, reaching an all-time high of ₹25.10 lakh crore in FY 2023–24. This paper analyses the evolution, institutional framework, trends, challenges, and policy measures related to agricultural finance in India. The study uses data from the Reserve Bank of India (RBI), National Bank for Agriculture and Rural Development (NABARD), and Ministry of Agriculture, presenting a holistic understanding of the credit landscape and offering policy suggestions for equitable and efficient rural financial inclusion.