Climate is one of the key components influencing agricultural production in India and has large-scale impacts on food production and overall economy. One of the indicators of agricultural impact due to climate change is crop yield variability. Most yield analysis in India showed higher vulnerability in rain fed crops followed by irrigated crops. Empirical studies measuring the economic impacts of climate change on agriculture show that such impacts can be significantly reduced through adaptation. This study based on primary survey collected from 180 farmers’ in Western Zone of Tamil Nadu. This study attempts to estimate economic impact of climate change on agriculture in Western Zone of   Tamil Nadu using Ricardian approach. The results showed that higher temperatures reduced net revenue in rain-fed farming. Increasing precipitation on rain-fed farms by 1 mm would increase the net revenue by ` 425.35 in kharif season and 1350.25 in Rabi season. Increasing precipitation in all the season increased net revenue in irrigated farms. The study concludes that, it is important to augment irrigation capacity to tide over the negative impact of climate change in agriculture