India’s bioeconomy has seen massive growth in the past decade, expanding from just US$10 billion in 2014 to $165.7 billion in 2024.
This rapid progress highlights the country’s push to use biotechnology for economic and environmental benefits.
Recently, the bioeconomy has contributed over 4 percent to India’s GDP and is growing at a strong annual pace of 17.9 percent.
By 2030, the sector aims to reach $300 billion, cementing its role as a key driver of India’s knowledge-based economy.
A major part of this transformation is India’s bioenergy sector, which is reducing reliance on fossil fuels. Ethanol blending in petrol has jumped from 1.53 percent in 2014 to 15 percent in 2024, with a goal of 20 percent by 2025.
This shift has already cut crude oil imports, saved billions in foreign exchange, and reduced carbon emissions.
Farmers and distillers are also benefiting, with significant financial support flowing into rural communities.
Renewable Focus Amid Economic Boom
Alongside its bioeconomy push, India is emerging as a key player in global energy markets.Unlike China’s energy-heavy industrial boom in the early 2000s, India is focusing on high-value manufacturing and renewable energy. This shift could help the country move toward a lower-carbon future faster.
“India’s growth story shares similarities with China’s rapid expansion, but crucial differences set it apart,” said Yanting Zhou, principal economist at Wood Mackenzie.
“While energy demand will surge, India’s industrial sector is less energy-intensive, and the country is better positioned to adopt efficient, low-carbon technologies compared to China in the 2000s.”
By 2033, India’s economy is expected to nearly triple to $9 trillion.
Coal demand is projected to double, while oil and power demand will see sharp increases. However, analysts say this won’t cause major global price shocks like China’s rise did.
The oil market is expected to absorb India’s growing demand, leading to only a slight increase in crude prices.
“If India can repeat China’s post-2010 strategy of investing in low-carbon supply chains for solar, wind, electric vehicles, and critical minerals, the higher emissions anticipated in the early 2030s will be temporary,” said Roshna Nazar, research analyst at Wood Mackenzie.
India will still need to import coal and liquefied natural gas (LNG), but global supply trends suggest that gas prices will likely remain stable.
Over the next decade, India is expected to invest $600 billion in expanding its power sector. This presents major opportunities for companies involved in energy production, grid expansion, and renewables.
“In addition to rising imports, achieving higher growth will require significant investment in domestic energy production, oil refining, steelmaking, and low-carbon supply chains,” said Zhou.
