Even though there has been a development of sophisticated technologies and procedures in other sectors, agriculture still remains the driving force behind the rural economy in countries such as India. In rural areas such as Jalgaon in Maharashtra, there are a number of individuals whose sole means of livelihood is agriculture. Nevertheless, there are several challenges they face in this venture, which include a lack of water availability, erratic rainfall, ineffective irrigation systems, and increased production costs among others. The conventional method of irrigation has been characterized by both over-irrigation and under-irrigation due to its heavy dependence on preset programs and subjective judgment. It is possible here to make use of modern technologies such as Internet of Things in order to boost the efficiency of farming practices. IoT will help us to track the environmental and soil parameters in real-time and make automatic decisions about irrigation of water. This research paper will focus on designing a system of Internet of Things for irrigation and then analyze its economics. Such sensors, along with microcontrollers like ESP32, are used to collect continuous information on soil moisture, humidity, and temperature on the farm. The collected data is processed on a cloud-based server to obtain the required amount of water needed for the growth of the crops based on their requirements. Based on the set threshold levels, this system has the ability to irrigate the land using actuators such as relay modules and water pumps. The performance of this IoT-based system will be analyzed through a case study approach. Information will be collected during one harvesting season and compared with traditional methods of irrigation. From the analysis performed, it can be concluded that using this IoT-based system results in saving up to 30-40% water used in the farm and also increases the yield of crops by 10-15%. From the economic point of view, despite the relatively high cost involved in setting up the IoT system, it can generate greater returns in the long run. Lower water usage, lesser power utilization, reduced manpower requirements, and enhanced efficiency lead to a favorable return on investment in the short run.