According to the World Bank, India is among the most water stressed countries in the world. India's water crisis is a complex issue that stems from a combination of multiple factors mainly rapid and unplanned urbanization and industrialization, unsustainable agricultural practices, climate change, water mismanagement, poor urban and rural planning rising sea levels and increasing pollution. The looming water crisis cannot be left ignored as it can impact the health of the population and the nation’s economic adversely. Among proposed solutions, rainwater harvesting emerges as a cost-effective solution that can be undertaken at the grass root level by the citizens themselves too. This paper analyses its advantages and challenges in an Indian context. According to the World Bank, India is among the most water stressed countries in the world. India's water crisis is a complex issue that stems from a combination of multiple factors mainly rapid and unplanned urbanization and industrialization, unsustainable agricultural practices, climate change, water mismanagement, poor urban and rural planning rising sea levels and increasing pollution. The looming water crisis cannot be left ignored as it can impact the health of the population and the nation’s economic adversely. Among proposed solutions, rainwater harvesting emerges as a cost-effective solution that can be undertaken at the grass root level by the citizens themselves too. This paper analyses its advantages and challenges in an Indian context.