The agriculture sector is considered as the backbone of Indian economy. From the very beginning of the planning process, the policy makers and planners in India have given high priority to the development of this sector. For better understanding of Indian agriculture, the Agro-Economic Research Centers (AERCs) were established in various agro-climatic regions of the country. 

Agro-Economic Research Center (AERC) Vallabh Vidyanagar was established in 1961 at Sardar Patel University by the Ministry of Agriculture, Government of India to carry out research in agricultural economics in the states of Gujarat and Rajasthan.  The Center is fully funded by the Ministry of Agriculture, Government of India, and it operates under the administrative controller of Vice-Chancellor.  This is one of the 15 AER Centers established by the Government of India.