Dr. Arvind Kumar*
India’s biofuel revolution is not merely about industrial scaling, it represents a profound shift in agriculture, energy, and rural livelihoods. Production capacity has soared from 38 crore litres in 2014 to 661.1 crore litres in 2025, driven by flagship schemes like the Pradhan Mantri JI-VAN Yojana, which promotes advanced bio-ethanol from crop residues, forestry waste, and algae.
In the face of the triple planetary crisis nations across the world are re-evaluating their energy choices with renewed urgency. Amid these global disruptions, India emerges as a beacon of transformative leadership, charting a sustainable path through innovative bioenergy strategies. The nation’s remarkable biofuel trajectory accelerating from a mere 1.5% ethanol blending in 2014 to achieving 20% five years ahead of schedule in 2025 epitomizes what can be accomplished when policy precision meets agricultural potential. As PM Modi recently emphasized at India Energy Week 2025, “India’s biofuels industry is set to grow rapidly with 500 million metric tonnes of sustainable feedstock”, underscoring the nation’s commitment to reimagining its farmers’ role from traditional Annadata to modern Urjadata.
The magnitude of this transformation extends far beyond numerical achievements. When we witness a thirteenfold increase in ethanol blending over merely eleven years, we’re observing something more profound than policy implementation—we’re witnessing the metamorphosis of India’s rural economy and energy independence narrative. But what makes this journey particularly compelling in today’s geopolitical landscape? How has India managed to navigate the treacherous waters of energy security while simultaneously addressing the triple planetary crisis of climate change, pollution, and biodiversity loss?
The answer lies in the government’s holistic and forward-looking approach, which bridges agricultural prosperity with energy security. Anchored by the National Policy on Biofuels (2018) and later revised to match India’s accelerated ambitions; the policy supports the development of 1G, 2G, and 3G biofuels, creating a robust ecosystem where agricultural waste becomes valuable feedstock. As Hon’ble PNG Minister Hardeep Singh Puri highlighted, this strategy has already led to ₹1.18 lakh crore in direct payments to farmers, ₹1.36 lakh crore in foreign exchange savings, and a reduction of 698 lakh tonnes of CO₂ emissions underscoring biofuels not just as an alternative to petroleum, but as a transformative rural and environmental solution.
Green Gold Rush
India’s biofuel revolution is not merely about industrial scaling, it represents a profound shift in agriculture, energy, and rural livelihoods. Production capacity has soared from 38 crore litres in 2014 to 661.1 crore litres in 2025, driven by flagship schemes like the Pradhan Mantri JI-VAN Yojana, which promotes advanced bio-ethanol from crop residues, forestry waste, and algae. The recent announcement of guidelines for 27% ethanol blending by August 2025 underscores the government’s commitment to pushing technological boundaries Complementing this is the SATAT scheme, targeting 5,000 Compressed Bio Gas plants by 2030, with the potential to generate 75,000 direct jobs and address rural waste management. In states like Punjab and Haryana, farmers now earn ₹1,500 per tonne for stubble once burned; bringing the waste-to-wealth philosophy to life. Backing this momentum is a dynamic research ecosystem, including the DBT Centre of Excellence and IOCL’s R&D Centre, which are pioneering third-generation biofuels and cost-effective enzyme technologies. This innovation network spanning IITs and regional institutes ensures that India’s biofuel strategy remains technologically advanced, environmentally sound, and socially inclusive.
The geopolitical implications of this transformation have become particularly pronounced in recent months. With the United States recently imposing trade tariffs reaching 50% on Indian goods, citing concerns over India’s energy import choices, the strategic value of energy independence becomes even more apparent. The Global Biofuels Alliance, launched during India’s G20 presidency and now encompassing 28 nations and 12 international organizations, represents India’s commitment to South-South cooperation. This isn’t merely about technology transfer; it’s about creating an alternative framework for international energy cooperation that reduces dependence on traditional fossil fuel trade relationships.
The integration of biofuels into India’s broader Amrit Kaal vision; the crucial period from 2025 to 2047 leading to India’s centenary of independence positions these initiatives within a comprehensive sustainability framework. With India’s commitment to achieving net-zero emissions by 2070, biofuels provide essential solutions for sectors difficult to electrify, particularly railways, aviation, shipping, and heavy transportation. The development of Sustainable Aviation Fuel, with targets of 1% blending in 2027 and 2% in 2028, demonstrates the expanding applications of biofuel technologies.
Yet, challenges remain formidable. Like navigating between Scylla and Charybdis, India must steer carefully between competing imperatives, achieving energy independence without compromising food and water security, and advancing rural prosperity without escalating ecological degradation. Feedstock limitations, seasonal variability, and high production costs, especially for biodiesel and advanced biofuels, affect economic viability in the absence of sustained incentives. The sector’s water-intensive nature, particularly sugarcane-based ethanol, raises concerns amidst increasing water stress. The diversion of food grains such as rice and maize has also triggered anxiety over food and feed security, while land-use shifts threaten essential crop production. Infrastructure gaps, regulatory fragmentation, and logistical inefficiencies hinder scalability, while environmental risks including vinasse waste, biodiversity loss, and soil degradation further compound the sustainability dilemma. Consumer hesitancy, lack of flex-fuel vehicles, and regional disparities reflect the demand-supply mismatch. Addressing these layered challenges is essential to ensure that India’s biofuel sector remains economically viable, socially equitable, and environmentally sustainable.
Way Forward
To advance India’s vision of Viksit Bharat by 2047, the biofuel sector must evolve from a policy success to a globally replicable model of inclusive, climate-resilient development. This requires a strategic pivot from dependence on food-based feedstocks to second- and third-generation biofuels leveraging agricultural residues, algae, and municipal waste to safeguard food and water security while scaling energy production. Robust investment in R&D, bio-refinery infrastructure, and feedstock supply chains will be critical to overcome current economic and logistical constraints. A nationwide rollout of flex-fuel vehicles, supported by consumer education. Additionally, regulatory harmonization and single-window clearances will streamline deployment, Internationally, India must continue to lead through the Global Biofuels Alliance, sharing its unique experience in blending policy, rural engagement, and environmental stewardship with the Global South. The transition from Annadata to Urjadata is more than symbolic, it reflects a paradigm shift where farmers become energy partners, waste becomes wealth, and rural India becomes the engine of green growth.
To truly realize the potential of biofuels, India must ensure that social equity, ecological balance, and economic viability remain central pillars of this transformation. This integrated approach anchored in innovation, cooperation, and sustainability can position India not only as a biofuel powerhouse but as a global exemplar in the just energy transition.
*Editor, Focus Global Reporter
