Abstract: The present disclosure relates to the field of algal cultivation and biofuels. Particularly, the present disclosure relates to a method of enhancing lipid production during algal culturing. Particularly, the present disclosure relates to a method of enhancing neutral lipid and total lipid production by maintaining algae in a thin layer cultivation system and exposing said algae maintained in the thin layer cultivation system to infra-red (IR) radiation. Said method enhances lipid accumulation in algae, thereby increasing the yield of neutral lipids and total lipids. The method is simple, cost-effective in producing high quantities of algal-derived biofuels, requires shorter time duration for lipid induction and results in no or minimal reduction of biomass.