India biofuel consumption 2024 rises 40%, making it the 4th largest biofuel user globally. Learn about ethanol blending, energy savings, and exam-relevant facts.
India Becomes 4th Largest Biofuel User in 2024, Surpassing China
India’s Green Fuel Surge
In 2024, India surged ahead to become the world’s fourth largest consumer of biofuels, overtaking China. The country recorded a sharp 40% jump in biofuel usage, consuming approximately 77,000 barrels per dayThis places India high on the global biofuel map and reflects its growing commitment to sustainable energy sources.
Key Drivers of Growth
India’s biofuel thrust has been propelled by robust government support through the Ethanol Blended Petrol (EBP) Programme, fiscal incentives, and regulatory reforms. Ethanol blending rose dramatically—from 5% in 2018–19 to roughly 14.6% by 2023‑24, with a dramatic boost in output from sugarcane and agricultural residue
Production Trends and Targets
Fuel blending has been supported by a 27% increase in biofuel production in 2024 India is also on track to hit its ambitious 20% ethanol blending target (E20) by 2025—five years ahead of its original 2030 milestone
Economics & Environment
This biofuel leap has significantly reduced India’s annual crude oil import bill by an estimated $4 billion, saving approximately ₹85,000 crore Additionally, ethanol blending has curtailed carbon emissions—comparable to planting nearly 175 million trees
Comparative Global Position
Globally, while the US remains the top biofuel user and producer, India’s rapid rise places it ahead of China in consumption—though China still leads in total production at 106,000 barrels per day, compared to India’s 70,000 bpd
Why This News Is Important
Energy Security and Economic Savings
Biofuel adoption reduces dependency on imported crude—a persistent vulnerability for India, which relies on imports for over 87% of its oil needs. The switch to ethanol-supported petrol can annually save $4 billion in foreign exchange This strengthens national energy security and minimizes exposure to volatile global oil prices.
Environmental and Public Health Impact
Increasing ethanol content in petrol diminishes carbon emissions and urban air pollution. Studies estimate a 50% reduction in CO₂ emissions in two-wheelers and 30% in four-wheelers In the densely populated cities, this shift is particularly vital for respiratory health and climate targets.
Farmer-Centric Rural Development
By purchasing surplus sugarcane and maize for ethanol, the government supports rural incomes and spurs agro-industrial investments through initiatives like PM-JI-VAN This diversification boosts agricultural incomes, aligns with the PM’s Doubling Farmers’ Income initiative, and generates rural employment.
Historical Context
Evolution of India’s Biofuel Policy
Ethanol blending began modestly in 2001 under Prime Minister Vajpayee’s leadership, but it gained momentum post-2014 under PM Modi, especially with the National Biofuel Policy (2018) and its subsequent amendments. The policy advanced the E20 blending target from 2030 to 2025, and introduced incentives like GST reduction, streamlined ethanol movement, and financing support
Shift from 1G to Advanced Biofuels
While initial biofuels were primarily first-generation, based on food crops, subsequent phases have embraced second-generation and waste-based biofuels. Government schemes like Pradhan Mantri JI-VAN, GOBAR-DHAN, and SATAT underscore the shift to non-food feedstocks—highlighting India’s commitment to sustainability
Key Takeaways from “India Becomes 4th Largest Biofuel User in 2024”
| S. No | Key Takeaway |
|---|---|
| 1 | India consumed ~77,000 barrels per day of biofuels in 2024, up 40% YoY. |
| 2 | India surpassed China to rank fourth in global biofuel consumption. |
| 3 | Ethanol blending in petrol rose from 5% → ~14.6% (2018–24); E20 targeted by 2025. |
| 4 | Biofuel strategy saves India ~$4 bn/year and ₹85,000 crore in forex. |
| 5 | Environmental gains include CO₂ emission reduction, aiding climate and health goals. |
Frequently Asked Questions (FAQs)
What are the environmental benefits of ethanol blending in vehicles?
It significantly reduces carbon dioxide emissions—up to 50% in two-wheelers and 30% in four-wheelers.
What is the significance of India becoming the fourth largest biofuel user?
It indicates India’s growing energy self-reliance, reduced crude import dependency, and leadership in sustainable energy.
How much biofuel did India consume in 2024?
India consumed approximately 77,000 barrels per day, marking a 40% increase over the previous year.
Which country did India surpass to become the fourth largest biofuel consumer?
India surpassed China in 2024 in terms of biofuel consumption.
What is the target year for India to achieve 20% ethanol blending (E20)?
The Government of India has advanced the target to 2025, five years ahead of the original goal.
How much money is saved annually by ethanol blending in India?
Around ₹85,000 crore or $4 billion is saved annually due to reduced oil imports.
What is the Ethanol Blended Petrol (EBP) Programme?
It’s a government initiative to blend ethanol with petrol to reduce oil imports and carbon emissions.
Which crops are used for ethanol production in India?
Sugarcane, maize, and agricultural residues are primary sources.
What government schemes support advanced biofuels in India?
Schemes like PM-JI-VAN, GOBAR-DHAN, and SATAT support second-generation biofuels.
Which countries are the top three global biofuel users?
The USA, Brazil, and Indonesia are the top three, with India now in fourth place.
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