The current investigation explores the economic impact of farmer-led innovations in the dairy sector developed at the grassroots level. The study was conducted in Haryana and Punjab in 2020-21, as these two states hold the greatest number of innovative farmers in India in the dairy sector as compiled from different secondary sources. Each state had two districts chosen at random. A sample size of 70 dairy farmers from each district and 20 Research and Development sector persons (public and private) were selected, thus constituting a sample size of 360 for the study. A before-and-after analysis of the chosen improvements from each chosen category, such as dairy production, processing, and management, was done to examine the economic impact. Paired 't-test analysis reveals a significant difference in terms of the total cost, total return, profitability, and B: C ratio for dairy advances. The before (Rs 35,560/-) and after (Rs 39,670/-) mean total cost data indicated that total cost increased after implementing the innovations. This could be owing to the added cost of the farmer's innovation. The paired 't' test statistics results revealed that the computed p-value is significant at the 5% level (p 0.05) with a t value of 4.352. With an increase in total cost, the B :C ratio rises significantly from 1.10 to 1.26. It may be concluded that, despite increasing cultivation costs, dairy innovations with improved B:C ratios are lucrative to farmers. The majority of the Farmer-led Innovations/ creative techniques were yield-related, cost-effective, and energy-efficient, yielding more income, lower labour costs, and improved food security.