Economic impact assessment is a process of measuring development objectives such as increase in production, income and improvements in the sustainability of production systems. The new technology transferred to farmers’ field raised many interesting issues i.e. production growth, employment and income generation. The recent trends in India’s agricultural growth and development indicate a sharp deceleration in the agricultural sector despite an overall impressive growth of the economy is a major cause of concern today. Therefore, it is necessary to examine the impact of trends in new agricultural technology witnessed after the introduction of improved methods of cultivation, particularly in arid region of Rajasthan. This will help resolving the present crisis in order to develop agriculture into a vibrant sector contributing substantially to the growth and economy for its sustainable development. In this paper, an attempt has been made to document the impact of a medicinal and a staple cereal- pearl millet variety on income generation and to analyze the responsible factors. The cost of cultivation is higher in Sonamukhi followed by hybrid pearl millet (HHB-67) and local cultivar. The total return from the Sonamukhi is much higher than pearl millet crop. The prevailing broadcasting method in Sonamukhi cultivation facilitates natural growing of water melon and thumba (Citrullus colocynthes). Sonamukhi generated additional income of Rs. 4320.00. The labour requirement for the local cultivar of pearl millet and hybrid (HHB-67) and Sonamukhi was of tune to 24, 33 and 44 man days. The Sonamukhi also acted as micro-shelterbelt. The soil fertility of the field has also increased as per farmers’ perception. Some of the fanners used the crop residue as manure afier decomposition. The additional employment was generated by 35%, 28% and 44% by employing new technology consisting of pearl millet, cluster bean and mung bean crops over traditional cultivation of pearl millet, cluster bean and mung bean crops, respectively. The contribution of new technology was of the time 33%, 27% and 40% and the remaining contribution was due to increase in complementary inputs.