India's biofuel drive is saving billions but also sparking worries

India has reached its goal of blending 20 percent ethanol with petrol (E20) five years ahead of schedule, cutting nearly 70m tons of carbon dioxide emissions and saving $1.5bn in foreign exchange since 2014. The government calls it a key step in reducing emissions and oil imports, BBC reported.

However, many older vehicles are not E20-compatible, raising concerns over lower mileage and potential engine wear. Manufacturers offer kits or additives, but costs and insurance coverage remain issues for consumers.

According to BBC, the policy also affects food security. Ethanol relies on sugarcane and maize, and higher demand has led to maize imports and diversion of rice meant for subsidized distribution. Experts warn further expansion could strain agriculture unless yields improve or more land is cultivated.