India’s biogas sector poised for major investment growth

India's biogas industry is projected to draw investments surpassing Rs 5,000 crore (€534 million) during the 2026-27 financial year, according to forecasts from the Indian Biogas Association.
The anticipated growth comes as market demand for renewable gas continues to rise across the country.
Recent government figures show that 94 compressed biogas plants generated sales exceeding 31,400 tonnes during the 2024-25 financial year, demonstrating robust sector expansion and market adoption.
More than 100 facilities are now operational nationwide, with 2025 seeing heightened interest from investors and industry stakeholders.
The sector's growth trajectory is being supported by recent policy changes, particularly a revised GST framework.
Industry leaders estimate that a 7 percent reduction in applicable GST rates could enhance project feasibility significantly, potentially increasing new investments by approximately 45 percent over the short to medium term.
Gaurav Kedia, chairman of the Indian Biogas Association, indicated that the industry size could reach USD 3-4 billion (€2.8-3.7 billion) in 2026, with projections to hit around USD 5 billion (€4.7 billion) by 2030.
The Ministry of New and Renewable Energy currently offers financial support covering 15-20 percent of project capital costs.
Additionally, the ministry provides marketing assistance of Rs 1.50 per kilogram (€0.016/kg) to encourage uptake of organic fertilisers, which are key byproducts of biogas production. Infrastructure development incentives are also available for pipeline connections to the national gas grid.
The association anticipates several key developments for the coming years, including the commissioning of additional compressed biogas facilities, establishment of organised feedstock supply chains, and implementation of integrated policy frameworks to accelerate biogas adoption.
Significant opportunities also exist for improving efficiency and capacity utilization among India's millions of small-scale traditional biogas digesters.
Government programmes are expanding support for medium-sized plants that provide cleaner cooking fuel, create rural employment and produce organic fertiliser.