Precision Agriculture (PA) contributes to a paradigm shift from traditional farming towards a data-driven, technology-enabled approach that optimizes resource use and enhances productivity. This review follows a structured narrative review methodology, where literature was collected from databases including Scopus, Web of Science, and Google Scholar using keywords such as “precision agriculture India”, “IoT farming”, and “soil sensors”. Studies were screened based on relevance, recency (post-2015 priority), and applicability to Indian conditions. This review synthesizes the current state of sensor technologies and Internet of Things (IoT) platforms, critically evaluating their applicability within the unique socio-economic and agro-climatic context of Indian agriculture. This paper introduces PA and traces its technological evolution, followed by a detailed analysis of various sensor types—including resistive, capacitive, and advanced spectral sensors—and their specific applications in irrigation and nutrient management. Key findings indicate that capacitive and IoT-enabled sensors offer the best cost–accuracy balance for Indian farms, while adoption barriers remain primarily economic and infrastructural. The review then delves into the architecture of IoT platforms, examining hardware like Arduino and Raspberry Pi, and communication protocols such as Lora WAN and NB-IoT, with a specific focus on smart irrigation systems. A significant portion is dedicated to the implementation challenges in India, including land fragmentation, economic viability, and digital literacy, proposing context-specific solutions. Finally, future directions involving AI, advanced sensing, and policy frameworks have also been proposed in this paper. It also summarizes on developing affordable, scalable, and farmer-centric solutions supported by robust institutional mechanisms with the significant technological potential in India.