One of the key objectives of modern economics is to determine factors that influence the economic development. This paper, therefore, seeks to discuss entrepreneurship as one of the factors that influence the economy of a nation, either directly or indirectly. It is fact that entrepreneurship plays a significant part in shaping the landscape of a country’s economy. Economists and policy makers recognize this fact. In fact, entrepreneurship is the engine of economic growth it has come to be perceived as a catalytic agent for expansion and promotion of productive activities in every sphere of economic life all over the world. This research paper will focus on finding out how entrepreneurship influences the economy of India. This paper will being with a brief introduction of the topic before proceeding to present a comprehensive view of literature relevant to the topic. It will then proceed to present an overview of relevant variables used in determining the role played by entrepreneurship in the economy of India.