India Biofuel Market Size, Share, Insights

India Biofuel Market Size, Share, Trends and Forecast by Type, Feedstock, and Region, 2025-2033

Report Format: PDF+Excel | Report ID: SR112025A30351

Buy Now Discount
Offer

India Biofuel Market Overview:

The India biofuel market size reached USD 5.82 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 9.87 Billion by 2033, exhibiting a growth rate (CAGR) of 6.05% during 2025-2033. The India biofuel market is driven by government policies promoting ethanol blending, rising crude oil import costs, and increasing demand for cleaner energy alternatives. Agricultural residue utilization, advancements in biofuel production technologies, and incentives for bioethanol and biodiesel production further support market growth, aligning with sustainability goals and energy security initiatives.

Report Attribute	Key Statistics
Base Year	2024
Forecast Years	2025-2033
Historical Years	2019-2024
Market Size in 2024	USD 5.82 Billion
Market Forecast in 2033	USD 9.87 Billion
Market Growth Rate 2025-2033	6.05%

India Biofuel Market Trends:

Government Policies and Ethanol Blending Program (EBP)

The Indian government’s Ethanol Blended Petrol (EBP) program is a major driver reshaping the biofuel market. Policies mandating ethanol blending targets, such as achieving 20% ethanol in petrol by 2025, have boosted domestic bioethanol production. Financial incentives, subsidies, and viability gap funding encourage sugar mills, grain-based distilleries, and agribusinesses to ramp up ethanol output. Additionally, the phased rollout of flex-fuel vehicles supports ethanol demand, while deregulation in feedstock procurement improves supply chain efficiency. The government's promotion of second-generation (2G) ethanol from non-food biomass further expands market opportunities. These initiatives not only reduce crude oil dependency but also create value for farmers by utilizing agricultural residues, making biofuels a key pillar of India's clean energy transition.

India Biofuel Market Size

Expanding Feedstock Diversification for Biofuel Production

India’s biofuel sector is advancing through diversified feedstocks to boost production efficiency and sustainability. Beyond sugarcane-based ethanol, the government has approved surplus grains like maize and rice, ensuring a stable ethanol supply while addressing food security concerns. The shift towards non-food biomass, including crop stubble, bamboo, and municipal solid waste, is accelerating with increased investment in 2G bio-refineries. Oil Marketing Companies (OMCs) are establishing 12 such refineries with an investment of ₹14,000 crore ($1.68 billion) to utilize lignocellulosic biomass for ethanol production. Additionally, biodiesel production from used cooking oil (UCO) and non-edible oilseeds is expanding, supported by procurement initiatives. This strategy strengthens India’s biofuel supply chain, mitigates price volatility, and promotes a circular economy through waste repurposing.

Rising Private Sector Participation and Investment in Biofuels

Private sector involvement in India’s biofuel industry is accelerating, driven by favorable policy frameworks and increasing profitability. Major energy companies, sugar mills, and agribusinesses are expanding ethanol distilleries and biodiesel plants to meet growing demand. Foreign investments and joint ventures are also rising, with global firms partnering with Indian stakeholders to introduce advanced biofuel technologies. The Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum are strengthening their biofuel portfolios through production facility expansions and new blending infrastructure. Additionally, startups and technology firms are innovating in areas like enzymatic conversion, waste-to-biofuel processing, and synthetic biofuels. This growing investment landscape enhances production capacity, technological advancements, and market competitiveness, positioning India as a key player in the global biofuel industry.

India Biofuel Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region level for 2025-2033. Our report has categorized the market based on type and feedstock.

Type Insights:

Biodiesel
Ethanol
Others

The report has provided a detailed breakup and analysis of the market based on the type. This includes biodiesel, ethanol, others.

Feedstock Insights:

Coarse Grain
Sugar Crop
Vegetable Oil
Others

A detailed breakup and analysis of the market based on the feedstock have also been provided in the report. This includes coarse grain, sugar crop, vegetable oil, and others.

Regional Insights:

North India
South India
East India
West India

The report has also provided a comprehensive analysis of all the major regional markets, which include North India, South India, East India, and West India.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

India Biofuel Market News:

In November 2024, Union Minister Nitin Gadkari announced that Mahindra, Toyota, Hyundai, and Tata plan to introduce 100% ethanol-powered vehicles within the next six months, accelerating India's biofuel adoption. This move aims to cut emissions, enhance energy security, and support rural economies. The announcement was made at an event honoring biofuel pioneer Dr. Pramod Chaudhari, recognizing his contributions to India's ethanol industry.
In August 2024, BPCL launched India’s first biofuel blend High Flash High-Speed Diesel (HFHSD) bunker at Mumbai Port, marking a milestone in green energy adoption. This initiative aligns with global efforts to decarbonize the shipping industry and reinforces BPCL’s commitment to sustainable fuel solutions, advancing India's transition toward cleaner maritime energy.

India Biofuel Market Repor Coverage:

Report Features	Details
Base Year of the Analysis	2024
Historical Period	2019-2024
Forecast Period	2025-2033
Units	Billion USD
Scope of the Report	Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment: Type Feedstock Region
Types Covered	Biodiesel, Ethanol, Others
Feedstocks Covered	Coarse Grain, Sugar Crop, Vegetable Oil, Others
Regions Covered	North India, South India, East India, West India
Customization Scope	10% Free Customization
Post-Sale Analyst Support	10-12 Weeks
Delivery Format	PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

Key Questions Answered in This Report:

How has the India biofuel market performed so far and how will it perform in the coming years?
What is the breakup of the India biofuel market on the basis of type?
What is the breakup of the India biofuel market on the basis of feedstock?
What is the breakup of the India biofuel market on the basis of region?
What are the various stages in the value chain of the India biofuel market?
What are the key driving factors and challenges in the India biofuel market?
What is the structure of the India biofuel market and who are the key players?
What is the degree of competition in the India biofuel market?

Key Benefits for Stakeholders:

IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India biofuel market from 2019-2033.
The research report provides the latest information on the market drivers, challenges, and opportunities in the India biofuel market.
Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India biofuel industry and its attractiveness.
Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.

Need more help?

Speak to our experienced analysts for insights on the current market scenarios.
Include additional segments and countries to customize the report as per your requirement.
Gain an unparalleled competitive advantage in your domain by understanding how to utilize the report and positively impacting your operations and revenue.
For further assistance, please connect with our analysts.

Purchase Options Discount
Offer

Inquire Before Buying

Speak to an Analyst

Request Brochure

Request Customization

Benefits of Customization

Personalize this research
Triangulate with your data
Get data as per your format and definition
Gain a deeper dive into a specific application, geography, customer, or competitor
Any level of personalization

Get in Touch With Us

UNITED STATES

Phone: +1-631-791-1145

INDIA

Phone: +91-120-433-0800

UNITED KINGDOM

Phone: +44-753-714-6104

Email: sales@imarcgroup.com

Client Testimonials

IMARC made the whole process easy. Everyone I spoke with via email was polite, easy to deal with, kept their promises regarding delivery timelines and were solutions focused. From my first contact, I was grateful for the professionalism shown by the whole IMARC team. I recommend IMARC to all that need timely, affordable information and advice. My experience with IMARC was excellent and I can not fault it.

The IMARC team was very reactive and flexible with regard to our requests. A very good overall experience. We are happy with the work that IMARC has provided, very complete and detailed. It has contributed to our business needs and provided the market visibility that we required

We were very happy with the collaboration between IMARC and Colruyt. Not only were your prices competitive, IMARC was also pretty fast in understanding the scope and our needs for this project. Even though it was not an easy task, performing a market research during the COVID-19 pandemic, you were able to get us the necessary information we needed. The IMARC team was very easy to work with and they showed us that it would go the extra mile if we needed anything extra

Last project executed by your team was as per our expectations. We also would like to associate for more assignments this year. Kudos to your team.

We would be happy to reach out to IMARC again, if we need Market Research/Consulting/Consumer Research or any associated service. Overall experience was good, and the data points were quite helpful.

Arabian Plastic Manufacturing Company Ltd.

The figures of market study were very close to our assumed figures. The presentation of the study was neat and easy to analyse. The requested details of the study were fulfilled. My overall experience with the IMARC Team was satisfactory.

The overall cost of the services were within our expectations. I was happy to have good communications in a timely manner. It was a great and quick way to have the information I needed.

My questions and concerns were answered in a satisfied way. The costs of the services were within our expectations. My overall experience with the IMARC Team was very good.

I agree the report was timely delivered, meeting the key objectives of the engagement. We had some discussion on the contents, adjustments were made fast and accurate. The response time was minimum in each case. Very good. You have a satisfied customer.

We would be happy to reach out to IMARC for more market reports in the future. The response from the account sales manager was very good. I appreciate the timely follow ups and post purchase support from the team. My overall experience with IMARC was good.

IMARC was a good solution for the data points that we really needed and couldn't find elsewhere. The team was easy to work, quick to respond, and flexible to our customization requests.

IMARC did an outstanding job in preparing our study. They were punctual and precise, delivering all the data we required in a clear and well-organized format. Their attention to detail and ability to meet deadlines was impressive, making them a reliable partner for our project.

I wanted to express my sincere appreciation for your efforts in handling this matter. Your dedication and commitment have truly been commendable. It is evident that you have put in a tremendous amount of hard work and expertise into resolving the issues at hand. I would also like to take this opportunity to inform you that we are greatly interested

Overall, the deliverable was well organized and my experience with the project team was good. In particular, I appreciated how they responded when I requested additional information and the Japanese version.

The IMARC team were extremely professional and very cooperative. The team were also extremely flexible in making changes and modifications wherever required. The entire experience right from project kick-off to after sales support was fruitful and smooth.

I’d like to express my gratitude for the work you accomplished with the industry report. The way you responded to the requirements and delivered under tight timelines shows your expertise, exceptional work ethic and commitment to your customer’s success. The entire team and company are incredibly thankful for your dedication. Once again, thank you

The market reports from IMARC have been instrumental in guiding our business strategies. We found the reports comprehensive and data-driven, which helped us make informed decisions. The detailed insights and actionable data have consistently provided us with a competitive edge in a rapidly changing alcohol market.

One of the best things about IMARC is their flexibility and predisposition to tailor the reports and adapt to our needs. They are not just great in their researching and consulting solutions, but their service is unparallelled. We’ve worked with them a couple of times and we will keep working with them in future projects.

We recently commissioned multiple market research reports from IMARC, and the insights we received were invaluable. The depth of analysis, accuracy of data, and actionable recommendations have greatly enhanced our strategic decision-making.

The market estimates provided by your team were pretty much in line with what we were theorizing internally. Really appreciate the work on this.

The sale account manager and the service was excellent. The data and market trends gathered from the report was insightful and really assisted while planning future product and growth strategies.

The report is excellent and has good amount of data and our team is extremely happy with the information provided.

Thank you very much for your cooperation and post purchase support. We were really happy with the final deliverable, and the takeaways from the report.