Biofertilizer is defined as a product containing carrier based (solid or liquid) living micro-organisms which are agriculturally useful in terms of nitrogen fixation, phosphorus solubilization or nutrient mobilization, so as to increase the productivity of the soil and/or the crop. These broadly include the nitrogen fixers (symbiotic and nonsymbiotic bacteria), phosphate solubilizing fungi & bacteria & the mycorrhizal fungi that are capable of mobilizing nonlabile nutrients from soil & transporting them to and across plant roots. Azospirillum species do not form root nodules or associate with leguminous crops. They live inside plant roots where they fix nitrogen, and can be used in wetland conditions. This group of microorganisms also produce beneficial substances for plant growth, besides fixing atmospheric nitrogen. Azospirillum does well in soils with organic matter & moisture content, and requires a pH level of above 6.0. Azospirillium led to saving of 15-25 kg equivalent of N2 per hectare.