Abstract Seaweeds are an integral part of coastal ecosystems and offer invaluable ecosystem services supporting the life of many marine forms. The economic value of seaweeds significantly contributes to the sustainable development of rural coastal regions. Seaweeds are consumed as food in some Asian countries, but their utilization for production of phycocolloids is widespread across the globe, with an estimated value of more than one billion US$. In India, seaweeds have been utilized exclusively for the production of phycocolloids but recently they are used for the production of plant growth stimulants for agricultural applications. The domestic agar and alginate industry totally depends on the supplies from natural seaweed beds with some occasional imports. The recent success achieved in both upstream and downstream technologies in production and processing of seaweeds has boosted the prospects for commercialization of seaweed resources in the country. The present article briefly appraises the current status of Indian seaweed resources and their utilization, as well as developments in seaweed farming technologies, the status of seaweed industry and recent efforts to transform seaweed farming into a social enterprise. It also highlights the challenges encountered for mainstreaming these resources so as to evolve into a marine industry.