The search for affordable, sustainable energy sources, especially algae-based biofuels is crucial because of the reduced accessibility of fossil fuels and the growing surge in greenhouse gas emissions. Algae-based biofuels present a viable alternative, as they can be produced sustainably without encroaching on agricultural land used for food crops. The high availability of wastewater in Indian cities provides a nutrient-rich resource for algae cultivation, enhancing its potential as a biofuel feedstock. This integration helps manage waste and reduce biofuel production costs. Key considerations for algae biofuel production include technological viability, economic viability, and resource sustainability. Technological viability involves developing efficient algal strains, optimizing cultivation, and advancing harvesting and processing technologies. Economic viability focuses on making algal biofuels cost-competitive with fossil fuels and other renewable energy sources. Resource sustainability ensures that production does not deplete resources or harm the environment. This chapter explores cost-effective methods for algal biofuel production, emphasizing innovations that reduce production costs. It examines the technological landscape, highlighting breakthroughs and ongoing research to improve efficiency and reduce expenses. Additionally, it addresses the opportunities and challenges specific to India, including available resources, regulatory frameworks, market dynamics, and socio-economic impacts. This chapter reviews the production of algal biofuels with a focus on cost-efficiency, exploring the opportunities and challenges in the Indian perspective.