Development of energy systems, based on forest biomass, is a challenging issue in India. The study investigated perceptions of fifty-five Indian Forest Service (IFS) officers in relation to the potential benefits and challenges associated with the development of forest-based bioenergy (FBE) projects in India when they participated in two training programs in Finland during 2010. They generally agreed that development of FBE projects could have beneficial impacts on job creation, income generation, rural development, and restoring ecological degradation. They perceived lack of public acceptance and political support, impacts on biodiversity, and lack of technologies and infrastructure as the considerable challenges to the development of FBE projects in India. The study could provide some policy directions towards developing the FBE sector in India. It recommends conducting further studies to include a larger group of experts and other stakeholders to investigate the broader societal perceptions of FBE projects in India. In addition, the study also recommends building the capacity of the IFS officers so that they can play a key role from the government side for developing the FBE sector in the country.