Horticulture sector is the fast emerging sector as the highly remunerative sector for changing the subsistence farming especially in the drought prone areas of the districts of the state. The paper presents the economics of capsicum cultivation under open-field and net-house. The primary data was collected from the sample respondents for the period of 2017-18 and analysed with appropriate tools. The findings of the study showed that the cost of cultivation was found higher in polyhouse (` 829975) followed by net-house (` 3,88,297) and open-field (` 1,66,375). And also net returns were higher in polyhouse (` 6,32,564) followed by net-house (` 1,87,973) and open-field (` 28,481). The study revealed that the capsicum cultivation under protected condition contributed most to the yield. Cultivating capsicum in protected condition (net-house and polyhouse) resulting not only increased yield but also increased productivity with good quality produce per unit area, also fetches high market price and can be cultivated in off-season as compared to open-field.