Microalgal lipids can be enhanced through varying nitrogen (N) content, and limited supply of nitrogen source seems to be valuable approach for increased lipid accumulation in microalgae. In this study, Chlorella sp. IM-02 was observed under fluorescence microscope for increased number of lipid bodies under nitrogen scarcity. Fourier transform infrared spectroscopy was used to determine spectral changes due to varying lipid content under nitrogen-starved (N 0 , without sodium nitrate), nitrogen-limited (N 0.1 , N 0.25 , N 0.5 and N 1.0 representing 0.1, 0.25, 0.5 and 1.0 g/L of sodium nitrate, respectively) and nitrogen-sufficient (N 1.5 , i.e., 1.5 g/L sodium nitrate) setting. Chlorophyll content was also monitored under these conditions as growth indicator. Various biochemical components viz. total carbohydrates, total proteins and total lipids were also estimated under varying nitrogen levels spectrophotometrically. On fourth day itself, maximum lipid productivity was observed in case of N 0.5 , which is having one-third of nitrogen concentration present in original growth media, BG-11. This concludes N 0.5 as suitable nitrogen provision for better production of lipids in Chlorella sp. IM-02 without much compromising the biomass production as both growth and lipid quantity are key parameters affecting the lipid productivity of any microalgal strain.