India $10.45 Billion Ethanol Market Competition Forecast & Opportunities, 2029F – Supportive Government Policies and Increasing Demand for Biofuels for Sustainable Development
The India Ethanol Market attained a valuation of USD 6,512.27 Million in 2023 and is poised for robust growth in the forecast period, projected to achieve a Compound Annual Growth Rate (CAGR) of 8.84% through 2029 and is anticipated to reach at USD 10456.98 million by 2029.
Ethanol, a renewable fuel derived from various plant materials collectively referred to as ‘biomass,’ is driving this growth. Ethanol’s lower carbon intensity compared to conventional fuels has resulted in reduced carbon emissions, aligning with India’s climate goals. The Indian government’s determined push for ethanol blending in petrol has been a transformative factor.
The Ethanol Blended Petrol (EBP) program, initiated in 2003, mandates blending ethanol with petrol to decrease greenhouse gas emissions and promote cleaner fuels. The government’s commitment to achieve 20% ethanol blending in petrol by 2025 has significantly boosted ethanol production. Furthermore, government support in terms of incentives, subsidies, and grants has incentivized investment in ethanol production infrastructure. These incentives have attracted both public and private sector interest, driving increased capacity and output.
Additionally, ethanol production provides an extra revenue source for farmers, contributing to rural economic growth. The promotion of ethanol bridges agriculture and energy sectors, benefiting farmers while bolstering energy security. These factors collectively contribute to the expansion of the India Ethanol Market in the forecast period.
Key Market Drivers
Increasing Demand for Biofuels for Sustainable Development
In recent years, there has been a growing global awareness of the necessity to transition towards sustainable energy sources due to concerns regarding climate change, depleting fossil fuel reserves, and the urgency to mitigate environmental degradation. India has emerged as a leader in adopting alternative energy solutions, with a strong emphasis on biofuels as a vital component of its sustainable development strategy. Ethanol, among the biofuels, has gained prominence as a cleaner and greener substitute for traditional fossil fuels.
Source Link: https://finance.yahoo.com/news/india-10-45-billion-ethanol-170000558.html?guccounter=1
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