The impact of continuous rise in ambient CO2 concentration (AC) in the atmosphere on different facets of growth of crop plants is assessed. The effects of CO2 enrichment (EC) on plant growth, C-3 and C-4 photosynthesis, source-sink ratio, partitioning and translocation of metabolites, photosynthetic enzymes, respiratory rate, leaf area index, stomatal conductance (g(s)), transpiration rate, biomass production and water use efficiency are reviewed. The CO2 fertilization effects are studied in both short-term (open top chambers) and long-term experiments. Long-term experiments suggest that ribulose-1,5-bisphosphate carboxylase is inactivated at high CO2 concentrations. Also g(s) is lowered. One of the conspicuous effects of EC is the closure of stomata in C-3 plants. Photosystem (PS) 2 electron transport is more affected than PS1. Starch is the immediate product accumulated in the leaf of C-3 plants. The ''CO2 fertilization effect'' does not confer any great advantage even in C-3 plants.