The paper enlists important policy measures taken to develop seed industry in India since 1947, progress made, and prospects for its growth. It reveals that the protectionist policy on seeds was abandoned in late eighties when seed industry was placed in Appendix I of the licensing policy. Subsequently under the New Seeds policy import of some seeds was placed under Open General Licensing while that of some others was permitted for two years subject to transfer of technology by the foreign company. Though impact of all such measures could not be seen immediately, the quality seed production has increased to 5.7 million quintals in 1989-90. The number of seed organizations in public and private sector has gone up to over 100. Seed multiplication alone has achieved a turn over of over Rs.3,000 million, about 50 pr cent of which was due to private sector. Few private companies have taken up seed research and are able to evolve more than 100 varieties/hybrids. However, still there is a big gap between production and requirement of quality seed. The requirement is estimated at 11.74 million quintals for 1989-90 and 22.19 million quintals for 2000 AD. The seed replacement has been far below the recommended rate for almost all major crops primarily due to non-availability of quality seeds of suitable varieties. Besides, there is good export demand for Indian seeds. Also to feed the teaming millions farm production must increase on continuous basis and productivity being the prime contributor to increasing production, seed quality must improve. Thus investment in research has good prospects and private sector must avail this opportunity to supplement public sector efforts. Biotechnology is a new hope as it ensures quicker multiplication and new strains. All this reflects on the bright prospects of growth for seed industry in India, the paper concludes.