This paper presents an overview of the evolution of the venture capital market in India and the impact of venture capital on economic growth and technological advancement in India. This paper first explains the VC industry processes in detail. Then discusses the development that occurred to the Indian VC market during the last 20 years. analyzes the venture capital activities, key investment sectors, new trends in the market, exits paths, and sources of funds. Finds obstacles that prevent the VC market to activate its full potential in India. Where regulatory being one of the major obstacles VC faces in the Indian venture capital market. On the other hand, there are many schemes from the government that aimed to promote, ease, increase VC investments in the market, and also programs to support firms with innovative ideas such as the TDP fund.