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Synopsis The present study undertaken by the Division of Agricultural Economics, Indian Agricultural Research Institute, New Delhi is a pioneering attempt to assess the economic losses on account of land degradation. The study reveals that at the national level, the economic losses are quite substantial and also identified the states in which the problem is severe. It is important to note that the problem is severe in the comparatively developed sates that are major contributors to food security of the nation. The high magnitude of economic losses can have serious impact on the income of the farmers. It is imperative therefore, that suitable measures be initiated urgently to arrest further degradation of land and reclaim affected areas so as to ensure the sustainability of Indian agriculture and the food security of the nation.