North Western Indo-Gangetic plains of Asia place a premium on maintaining its rice producing systems for the sake of food security and economic development. In addition to agricultural inputs, social and environmental variables contribute to this productivity boost. To address these new issues, innovative and lucrative solutions that minimize waste of resources and financial resources have been developed. The soil health, the subsurface water table, and the release of greenhouse gases that contribute to global warming are all threatened by the high resource requirements of traditional rice transplanting. There are labour shortages during transplanting because agricultural workers have left the industry to find higher wages in the metropolis. The low plant density of the conventional transplanting approach necessitates the use of supplementary inputs like fertilisers and insecticides, which drives up the cost of production and decreases harvest yield. In these conditions, rice transplanting must not only be cost-effective, but also labor-efficient, all without compromising the expected crop yield. Mechanical paddy transplanting (MPT) improves crop yields and guarantees timely planting. Mechanical rice transplantation is simple and profitable. Although growing mat-type nurseries outperform conventional transplanting methods, they have low field acceptability because of high entry barriers and a lack of expertise. With the use of technological knowledge, rapid availability, and specialized employment, farmers may be able to apply automated transplanting. Rice seedlings may be easily transplanted into soils with varying textures using MPT, which is an environmentally benign and climate-smart technique. It helps increase the profitability, sustainability, and production of rice farms while decreasing their carbon footprint. This review looked at the positive and negative effects that using mechanical paddy transplanting to deal with a lack of labor had on NW IGP rice yields, profits, and sustainability, and then identified the gaps that need to be filled for wider adoption.