Mushroom industry globally has expanded both horizontally and vertically, meaning that the expansion has been in production and addition of newer types of mushrooms for commercial cultivation, both edible and non-edible mushrooms. India, being a developing country is fortunate to have a varied agro-climate, abundance of agro wastes, relatively low-cost labour and a rich fungal biodiversity. These factors combined make India a potential major producer of temperate, tropical and subtropical mushroom species. Per capita consumption of mushrooms in India is less than 50 gas against over a kg in various countries. Moreover, its enormous population could support the large-scale consumption of nutritious mushrooms by a significant health-conscious urban population as well as the rural masses struggling with hunger and malnutrition, particularly vegetarians who rely heavily on a cereal-based diet. In the coming years, there is going to be good demand for processed and fast foods. Mushrooms may be canned to meet the demand in the off-season and in the non-producing areas. There is no denying the fact that production of mushrooms, especially of the white button mushroom, in India has gone up in the last few years, but it has also exacerbated its marketing problems. Therefore efforts should be made to increase the production and solve the marketing problems. The marketing of fresh mushrooms would determine the future of mushroom industry in India. This article is an attempt to analyse the current scenario of the mushroom industry in India.