Vertical farming, a form of Controlled Environment Agriculture (CEA) that cultivates crops in vertically stacked layers under regulated light, temperature and nutrient conditions, has emerged as a response to India's shrinking per-capita arable land, groundwater stress and rising urban demand for fresh, pesticide-free produce. This paper examines the productivity pattern of vertical farming in India using secondary data drawn from industry reports, government publications and peer-reviewed literature. It situates the phenomenon within the economic theories of production function, diminishing and increasing returns, land rent (Ricardian theory) and innovation diffusion, and analyses land productivity, water-use efficiency, capital intensity and market growth trends between 2020 and 2034. The analysis shows that vertical farms can achieve yields several times higher per unit area than open-field cultivation, while consuming a fraction of the water, even though high capital cost, energy dependence and limited crop diversity constrain the scale of adoption. The paper concludes that vertical farming exhibits a distinct productivity pattern in which land productivity rises sharply while capital productivity initially falls, gradually improving as technology costs decline and clusters of adoption emerge around metropolitan demand centres. Policy suggestions include capital subsidies, renewable-energy-linked incentives, cluster-based infrastructure and skill development to help vertical farming complement, rather than replace, conventional agriculture in India's food security strategy.