Contract farming has gained momentum in India over the past few decades, as a way to improve agricultural productivity, reduce risks for farmers, and ensure a steady supply of quality products for agribusinesses. However, the success of contract farming depends on various factors, including the regulatory framework, infrastructure, and the bargaining power of farmers. This paper analyses the challenges and opportunities of contract farming in India, based on a review of relevant literature and empirical studies. It highlights the need for a supportive policy environment that ensures fair and transparent contracts, protects farmers' rights, and promotes market access and competitiveness. The study also examines the impact of contract farming on small and marginal farmers, women farmers, and the environment, and suggests strategies to address the potential risks and promote inclusive growth. The findings suggest that contract farming can contribute to market integration and rural development in India, but it requires a holistic approach that considers the interests and needs of all stakeholders.