It is common practice in two-beam and three-beam interferometry to obtain coherent light sources by using slits in a coherent field (division of wave-front) or by means of suitable mirror devices (division of amplitude). The purpose of this paper is to show that better coherence properties may be realized if one uses grating diffraction spectra as coherent light sources. As a result one may use a source larger than what is permissible in a conventional slit-interference set-up and thereby gain in photometric efficiency. Further, it is shown that the fringes with slit interference are, in general, inhomogeneously distributed in space. The proposed method of interference between the disturbances from the different grating spectra does not suffer from these disadvantages. Also one gets achromatic fringes, and hence the grating interference technique is ideally suited for interferometry in the ultra-violet or infra-red region of the spectrum. The physical reason for the achromacy of the fringes is easy to understand, if one considers the fringes as images of the grating produced by lenses which have no chromatic aberrations. Finally, other interferometric devices have also been discussed in terms of coherence.