India is a developing country and normally most of the developing countries believe that economic growth and development are necessary to reduce poverty and human deprivation.India has recorded impressive rates of economic growth in recent years and is expected to achieve an economic growth rate of over 8% per annum in the near future . However, a healthy rate of economic growth equaling or exceeding the current rate would require a major provision of infrastructure and enhanced supply of input such as energy. At present majority of the energy demands are met by using conventional sources however now the impetus has shifted towards renewable energy sources as they are sustainable and environmental friendly. Biomass energy includes energy from all plant matter and can be harnessed to meet the ever rising energy demand. Environmentally their impacts are less when compared to fossil fuels if they are used to produce liquid fuels and hence lead to reduction in carbon dioxide and thereby help in mitigating climate change effects. Socio-economically they lead to improvement of livelihoods of the poor and lead to generation of jobs and energy security across different socio-economic groups.Biomass can be grown and hence it is sustainable, leads to labour employment for woody biomass production and collection and as it is used for producing green fuels various incentives are given to this industry.However one has to be careful so that all available lands or good fertilised land for agriculture should not be replaced by bioenergy crops as it would lead to food security issues.However biomass can play a major role in meeting the energy demands of developing countries if is tapped in the right way.