The Federation of Indian Chambers of Commerce and Industry (FICCI) has extended its congratulations to the Indian government for achieving a significant milestone: blending 20% ethanol with petrol, five years ahead of the original 2030 target.
Jyoti Vij, Director General of FICCI, praised this accomplishment, calling it a major success in India’s efforts toward energy security and sustainability. She noted that the government’s vision for industrial growth and decarbonization is clearly reflected in this achievement. Highlighting the rise in ethanol blending from just 1.5% in 2014 to 20% in 2025, Vij said this progress demonstrates India’s strategic approach to energy transition. She added that FICCI, representing Indian industry views this as a defining step towards an Atmanirbhar, low-carbon economy. We remain committed to facilitating policy dialogue, innovation, and partnerships that help for a cleaner, more resilient future.
India’s ethanol industry is closely tied to its agricultural sector, with sugar and grain-based producers playing a vital role in supplying biofuel to the nation.
Starting from a mere 1.5% blending rate in 2014, ethanol integration in petrol has increased nearly thirteenfold over 11 years. Production has surged from 38 crore litres in 2014 to 661.1 crore litres by June 2025.
This growth has significantly reduced India’s reliance on imported crude oil, resulting in foreign exchange savings of Rs 1.36 lakh crore. Additionally, distilleries have earned Rs 1.96 lakh crore, supporting the biofuel industry’s expansion, while farmers have received Rs 1.18 lakh crore, boosting rural incomes and strengthening the agricultural economy.
The environmental benefits have been substantial as well, with the adoption of cleaner fuel reducing CO2 emissions by 698 lakh tonnes.
