Energy use is directly proportional to the economic activity once a country goes from “Developing” to “Developed”. With a liberalised climate, a strong industrial base and an economically empowered population, India has all it takes to be one of the fastest growing global economies, the importance of energy, therefore, is paramount. India ranks sixth globally, accounting for 3.5 percent of the world commercial energy demand. This is primarily met by fossil fuel sources-coal (52%), oil and gas (44%), hydropower (2%), nuclear (1.7%) and the rest from non-conventional sources. In USA and Europe biodiesel from edible oil sources (soybean, rapeseed) is used. In India, for the reason of edible oil demand being higher than its domestic production, there is no possibility of diverting this oil for production of Bio-diesel. There are many tree species, which bear seeds rich in non-edible oil. Species like Pongamia pinnata, Calophyllum inophyllum, Jatropha curcas, Euphorbia antisyphilitica, E. tithymaloides, E. caducifolia E. royleana E. neerifolia, Calotropis gigantea and C. procera have been found promising as petro crops. Among these species recently there had been thrust on biodiesel potential of J. curcas. It is a fast growing and long-lived plant, easy to propagate, can grow and survive with minimum inputs in marginal land and not browsed by animals and seeds not eaten away by birds. Time taken for nut yield is between 2 to 5 years based on soil and rainfall conditions. Besides environmental beneficial, biofuels are likely to emerge as an alternative transport fuel and help in generating employment both in urban and rural areas. This paper describes the use of biofuels, its advantages and role in generating employment in India.