India's ambitious ethanol blending program is yielding significant economic benefits, with recent figures indicating substantial savings in foreign exchange. Union Minister Hardeep Singh Puri has stated that India has saved approximately $19.3 billion (₹1.44 lakh crore) in foreign exchange through its ethanol-blended petrol program. This achievement is primarily attributed to the country's reduced dependency on imported crude oil.
The ethanol blending initiative has seen impressive growth, with ethanol production surging from 38 crore litres in 2014 to 661.1 crore litres by June 2025. This increase in production has allowed India to achieve 20% ethanol blending in petrol, a target that was met five years ahead of schedule. In July 2025 alone, the ethanol blending rate stood at 19.93%. The government aims to achieve 30 per cent ethanol blending (E30) in petrol by 2030.
Beyond the economic advantages, the ethanol blending program has also had a positive impact on the agricultural sector. A sizable amount, ₹1.18 lakh crore, has been disbursed to farmers, boosting rural incomes and bolstering the agricultural economy. Furthermore, ₹1.96 lakh crore has been paid to distilleries, fueling the expansion of the domestic biofuel industry. Union Road Transport and Highways Minister Nitin Gadkari noted that farmers are benefiting greatly from the use of feedstocks like sugarcane and maize in ethanol production, with approximately ₹40,000 crore paid to them.
The environmental benefits of ethanol blending are also noteworthy. The increased use of ethanol-blended petrol has led to a significant reduction in carbon dioxide emissions, with a reduction of 698 lakh tonnes, contributing to India's climate goals. The program has also resulted in the substitution of over 244 lakh metric tonnes of crude oil and a net CO2 reduction of about 736 lakh metric tonnes.
Furthermore, extensive testing has demonstrated that the use of ethanol-blended petrol has no adverse impact on the performance of automobiles and commercial vehicles.
Hardeep Singh Puri emphasized that the shift towards ethanol-blended fuel has not only strengthened energy security but has also led to considerable economic and environmental advantages. The success of the program has transformed farmers into "Urjadaatas" (energy providers) in addition to "Annadatas" (food providers), as money previously spent on crude oil imports now supports Indian farmers.
