There is a need to develop new approaches to deal with the effects of growing urbanization, such as rising demands for water and electricity, hygiene, services provided by the government, education, and healthcare. This paper aims to discuss the challenges and issues associated with sustainable development policies and their legal framework in India. We cannot deprive natural resources for economic growth and development. For growth to be sustainable there must be a balance between economic, ecological, and social growth with the protection of natural resources. The developmental advancement of science and technology cannot permit environmental degradation. The Concept of Sustainable development was formalized in UNCED in 1992 and reflected in various international declarations, conventions, etc. has become a part of national law and its policy. Hence, development policies must be strategized and aimed toward ecological vis-a-vis social growth. In response to increasing environmental challenges, Indian policy towards sustainable development need to be reformed. However, for such policy reforms to be effective, it needs to restrict certain limitations on government or private agencies within the bounds of economic development. This paper will demonstrate and analyze policies of environmental development, challenges and issues of environmental laws in India, and their legal application.