Based on a randomly selected sample of 245 smallholder dairy farmers the present study seeks to assess the comparative economic returns and resource productivity of crossbred cattle adopters and non-adopters in Assam. Given that crossbred cattle are superior in terms of lactation milk productivity and other reproductive characteristics, economic returns from milk production is higher for crossbred cattle adopter farmers. The study shows that since most of the farmers are found to use family labour and meet part of the fodder requirement from domestic supply, this may incentivize these farmers to adopt crossbred cattle for raising dairy income. The study finally suggests that feeding of concentrate to the crossbred cattle is more important for raising its milk production; while green fodder is not as important as feeding of dry fodder for both the cattle groups (crossbred and indigenous) for efficient milk conversion of the same.