The present study evaluates the economic aspects of Rhizobium-gypsum technology in groundnut, based on the data from 100 randomly selected farmers in Davanagere taluka of Chitradurga district (Karnataka), Tabular analysis was used to assess the costs and returns of groundnut production for users and non-users of Rhizobium-gypsum technology. The pro­ductivity difference between users and non-users of this technology was analysed with the help of decomposition technique. The study clearly indicated the possibility of increasing groundnut productivity by adopting Rhizobium-gypsum technology on a wider front. The additional cost involved in the adoption of this technology was found to be negligible