What are biofuels and why are they important to India's economy? What do you know about the Indian National Policy on Biofuels?
In short
Biofuels are fuels such as ethanol and biodiesel made from biomass, important because India imports over 85% of its crude oil, so they cut imports while raising farm incomes. The National Policy on Biofuels (2018) widened feedstocks to agro-waste and damaged grains, promoted 2G ethanol and targets 20% ethanol blending.
Model answer
Ghissu Editorial · Verified 4 Oct 2026 · 254 words
Policy Milestones
Starting with 5% ethanol blending in 2003, the 2018 National Biofuel Policy broadened feedstock to agro-waste, surplus grains, and non-edible oils, targeting 20% ethanol and 5% biodiesel by 2030. This evolution reflects a strategic move to diversify raw materials and improve fuel availability.
Economic Benefits
Biofuels reduce crude oil imports, generate rural employment, and support Aatmanirbhar Bharat and Make in India goals. They also improve farmer incomes by creating new markets for agricultural residues and non-food crops.
Environmental Gains
Using agricultural residues and waste aligns with Swachh Bharat Abhiyan by managing waste and lowering pollution. It also mitigates greenhouse gas emissions by replacing fossil fuels, contributing to India’s climate commitments under the Paris Agreement.
Innovation Support
The BioE3 Policy and Bio-RIDE scheme promote R&D in biofuel technologies, enhancing indigenous capabilities. These initiatives focus on advanced conversion technologies and sustainable feedstock development to overcome current limitations.
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