Jatropha, a non-edible oil seed yielding plant has been identified by the Government of India to produce biodiesel under National Biodiesel Mission. Failure of National Biodiesel Mission Phase-I requires critical analysis of all the possible facts related to its long-term sustainability. Present work identifies important sustainability issues related to promotion of Jatropha biodiesel in India. These sustainability issues have been regrouped in four major categories: technological, environmental, economic and social. This paper attempts to explore various sustainability issues taking into account the recent Indian experiences with possible government support/initiatives for successful adoption of Jatropha biodiesel in Indian scenario.