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
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Key Statistics
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Base Year
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2024 |
Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024 | USD 5.82 Billion |
Market Forecast in 2033 | USD 9.87 Billion |
Market Growth Rate 2025-2033 | 6.05% |
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.
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.
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:
The report has provided a detailed breakup and analysis of the market based on the type. This includes biodiesel, ethanol, others.
Feedstock Insights:
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:
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.
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.
Report Features | Details |
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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:
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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:
Key Benefits for Stakeholders: