The agricultural marketing infrastructure includes physical and financial infrastructure. At present, the need for these market infrastructures has been increased due to increased production and marketed surplus. The study was conducted in regulated markets of Karnataka. The data pertaining to both physical and financial indicators such as market functionaries, income and expenditure, market arrivals and commodities turnover over a period of time and operation of different promotional schemes introduced by Karnataka State Agricultural and Marketing Board and Government of  Karnataka are collected for last five years. The data so collected were analyzed by using factor analysis through principal component technique to draw policy decisions regarding market performance. Factor analysis were carried out for physical performance of regulated markets in Karnataka, it was found that three dimensions explained nearly 90 per cent of the total variations  comprised of 24 physical indicators out of 33 considered for the present study. Key physical indicators were number of beneficiaries under pledge loan scheme, annual turnover of groundnut, area of jowar, market functionaries, area under cotton and number of sub markets. In case of financial indicators, the selected three dimensions absorbed 97.28 per cent variation when included 11 out of 17 financial indicators considered for the present study. The first dimension itself explained 53.98 per cent variation. Major financial indicators were total annual turnover, expenditure of regulated markets, Raitha Sanjeevini Scheme and income- expenditure ratio.