Using district-level panel data, this paper has assessed sensitivity of Indian agriculture to climate change. Results show that a rise in temperature would reduce agricultural productivity, while rainfall unless it is in excess, will tend to counterbalance harmful effects of temperature. Irrigation is an important adaptation strategy to reduce harmful effects of warmer climate. Predictions suggest that by end of this century, a significant change in climate may reduce productivity of Indian agriculture by 25 per cent. Agriculture in arid and semi-arid regions is more sensitive to climate change, and would be more impacted by climate change. The loss will be higher in the absence of adaptation.