The Union Budget, presented on Sunday, had some key policy push on the green energy transition.
Commenting on the Budget, Vijendra Singh, President, All India Distillers’ Association (AIDA), said that the Union Budget 2026 strengthens India’s biofuel momentum at a critical inflection point for ethanol producers and distilleries.
He said that with the government advancing duty exemptions for biogas-blended CNG and reinforcing incentives for ethanol growth, the emphasis on digital agriculture through initiatives like Bharat Vistaar; a multilingual AI platform integrating Agri Stack and ICAR advisories, will further strengthen feedstock productivity and informed farm level decision-making.
“India’s ethanol blending has surged from 1.5% in 2014 to nearly 19% today, reflecting the success of the Ethanol Blended Petrol programme and reinforcing energy security, farmer participation, and industrial value creation. Together, these measures enhance rural livelihoods, expand domestic fuel alternatives, and accelerate the transition toward cleaner, self-reliant energy,” he stated.
US President Donald Trump lowered American tariffs on Indian imports from 50% to 18%, which has buoyed the overall mood in the country. The Prime Minister said that when two large economies and the world’s largest democracies work together, it benefits people and unlocks immense opportunities for mutually beneficial cooperation.
Singh said that any trade deal that strengthens India’s economic growth is positive for the entire industry ecosystem.
“As the economy expands, benefits accrue across sectors, and the ethanol and bioenergy segment is no exception. Stronger economic momentum enhances investment sentiment, stimulates demand, and creates opportunities spanning agriculture, manufacturing, and energy. For ethanol producers and distilleries, this translates into greater stability, deeper integration with global value chains, and faster progress towards cleaner, self-reliant energy pathways,” he said.
AIDA members are fully geared to address global challenges arising from evolving geopolitical uncertainties by scaling up ethanol production and reducing India’s dependence on imported crude oil.
He said that “Alongside ethanol, biogas and other green energy solutions are increasingly supporting the country’s energy requirements. Together, these efforts will not only strengthen India’s energy security but also contribute significantly to lowering the nation’s import bill. However, we are waiting for more details to study the impact on the alcohol and ethanol sector”.
