A study was conducted in Gujarat, India to measure the economic impact of Bt cotton as compared to Non Bt cotton in order to identify the problems faced by the farmers cultivating Bt cotton. The study also proposed to identify the problems and concerns related to growing of GM crops and its prospects not only in Gujarat but the nation as a whole. Since health concerns in case of genetically modified crops remains a major issue therefore survey was conducted to study the impact on environment, health and the soil. A sample size of 200 farmers cultivating Bt cotton and 200 of farmers cultivating conventional cotton was taken. Around 100 dealers of Agro Products were also taken as samples. The results revealed that Bt cotton gives higher yield than conventional varieties of cotton. Bt cotton has led to improvement of economic condition of farmers and a higher standard of living. But it cannot be denied that Bt cotton does have an adverse effect on health, environment and soil as some farmers do suffer from allergy while working on Bt cotton fields and it also leads to reduced fertility of soil. Another negative aspect of Bt cotton is that farmers have to incur high costs on irrigation, fertilizers and pesticides. However most of the farmers are satisfied with Bt cotton and are ready to accept other GM crops.