The global mushroom industry has grown rapidly in recent years in terms of beneficial effects, market value, and demand. India has a wide range of agro-climatic conditions and is largely an agricultural country with a cultivated area of about 4.37 %, generating about 620 million tons of agro waste annually. Mushroom cultivation not only helps recycle agro wastes, but also fills the nutritional gap prevalent among a large population of India. Recently, government industrial policy and creative innovation has promoted research and other endeavors aiming towards the cultivation of mushrooms. Mushroom cultivation in India was initiated in Solan, in the mid-sixties. Mushroom cultivation has been successful in temperate regions of the Himalayas, the Western Ghats, and the hills of northeast India. Recently, many unemployed people have begun to adopt mushroom cultivation as a means of self-employment. It is high time that Indian mushroom cultivators and consumers became aware of the nutritional and medicinal values of cultivated and wild species of mushrooms. The total mushroom production in India between 2010 and 2017 was approximately 0.13 million tons, accounting for a 4.3% increase in the average growth rate of mushrooms per annum. In particular, the total production of white button mushrooms is the highest, with a share of about 73% of total mushroom production. In this review article, we have analyzed the current scenario of the Indian mushroom industry and its contribution to the economic growth of the country.