Due to its large, exclusive economic zone, India has considerable potential for implementing large-scale cultivation of macroalgae. However, such cultivation requires the availability of, and access to, sites where technical, legal, governmental, and environmental factors are favorable. This review discusses the challenges that have held back the development of seaweed cultivation in India. The review is based on a literature survey and informal discussions with industry-related personnel. It cites the strong need for clear and definitive policies related to access to and use of coastal waters to enable the Indian seaweed industry to reach its full potential. The main challenges that the expansion of macroalgal cultivation in India face are related to legal and regulatory aspects that can be resolved by focusing the policy issues on providing planning tools toward success. In addition, there is a strong need for an adequate bioeconomy that clearly defines the need for marine macroalgal biomass for food, chemicals, and biofuels. Furthermore, the Indian government needs to allocate sufficient funds for accelerating seaweed R&D in areas of seaweed cultivation, harvesting, processing technologies, and their implementation in the local industry.