Newcastle disease (ND) is one of the most catastrophic diseases of poultry and has potential to cause enormous economic losses in the poultry industry. There were several outbreaks of ND recorded in India; however, the economic impact of ND on poultry industry remains unclear and demanded calculation of economic losses due to ND among the commercial layer in the India. This paper analyses the economic losses among a total of thirteen flocks of eleven layer farms were ND outbreak reported during the period January 2013 to July 2014. A new economic model was developed to calculate economic losses occurred due to mortality, vaccination, production lost, treatment and biosecurity measures of individual layer flocks. Total economic losses in all the layer flocks were 3719223 rupees. Loss from mortality was contributed 2998105 rupees out of total economic loss. Highest 80.61 percent and lowest 0.70 percent out of total economic loss was documented due to mortality and biosecurity measure respectively. In India, ND is leading to enormous economic loss among commercial poultry farmer inspite of stringent vaccination against ND. The generation of valuable data from this study will be useful to calculate global economic loss due to Newcastle disease in the poultry industry.