India Biomass Market: Current Analysis and Forecast (2025-2033)

India Biomass Market Size & Forecast

The India Biomass market was valued at USD ~3,500 million in 2024 and is expected to grow to a strong CAGR of around 7.47% during the forecast period (2025-2033F), owing to the abundant agricultural and forestry waste availability.

Biomass Market Analysis

Biomass describes organic products usable as renewable sources of energy, which are produced by plants, animals, and waste. Within energy production, biomass incorporates agricultural waste, forestry waste, animal waste, and municipal organic waste that have been processed into solid fuel, bio gas, or bio fuel. It is an alternative rather than a fossil fuel and helps secure the energy and decrease emissions.

To spur the Indian biomass market, firms are investing in in-plant compressed biogas (CBG), biomass pellet production, and waste-to-energy initiatives, such as SATAT and the National Bio-Energy Programme. The establishment of networks for feedstock aggregation to guarantee supply throughout the year, a decentralized power model in rural settings, and partnerships between state nodal agencies and companies in the public-private partnership pattern are being followed by many. Firms such as Husk Power Systems, PRESPL, and Abellon CleanEnergy are utilizing bioenergy as a source for power generation, as well as in industrial steam and transportation fuels.

For example, on June 28, 2025, the Ministry of New and Renewable Energy (MNRE) issued revised guidelines for the Biomass Programme under Phase I of the National Bioenergy Programme, applicable for the period FY 2021–22 to 2025–26. These amendments aim to promote cleaner energy solutions, ease of doing business, and accelerate the adoption of biomass technologies across India.

India Biomass Market Trends

This section discusses the key market trends that are influencing the various segments of the India Biomass market, as found by our team of research experts.

Integration with Waste Management

An emerging trend in the India biomass market is the connection of biomass energy schemes to municipal and agricultural waste management networks. The segregated wastes of organic waste and crop residues are also being utilized by companies to generate biogas, pellets, and biofuels, and are being converted into profit-generating energy forms. It is a strategy that helps both in energy production and waste management, as part of urban sustainability and Swachh Bharat initiatives. It also provides access to public-private partnerships in establishing decentralized waste-to-energy facilities, increasing the practice of circular economy within the cities, as well as rural India.

For instance, on April 2, 2025, according to the Ministry of Science & Technology, Indian Scientists developed advanced technologies for solid waste management, including plastic waste. Significant progress has been made by Indian researchers, institutions, and innovators in devising technologies and strategies to manage solid waste. These technologies are high-rate bio methanation technology, decentralized solid waste management technology, technology to recycle the Construction & Demolition (C&D) waste, and others.

Biomass Industry Segmentation

This section provides an analysis of the key trends in each segment of the India Biomass market report, along with forecasts at the regional and state levels for 2025-2033.

The biogas market segment is expected to grow with a significant CAGR during the forecast period (2025-2033).

Based on the product, the market is segmented into solid biomass, liquid biofuels, biogas, and others. Among these, the biogas market segment is expected to grow with a significant CAGR during the forecast period (2025-2033), with the rising interest in sustainable energy and circular waste management. Driven by the government, initiatives such as SATAT are encouraging the private sector's involvement in establishing compressed biogas (CBG) plants. This creates new sales points for businesses in raw materials procurement, construction of plants, and marketing of Compressed Bio Gas (CBG). For instance, on April 23, 2025, following its earlier announcement on September 13, 2024, Bharat Petroleum Corporation Limited (BPCL) and GPS Renewables Private Limited officially entered into a Joint Venture (JV) agreement to establish Compressed Biogas (CBG) plants across India. This strategic alliance is a significant step towards advancing India’s energy transition and contributing to BPCL’s Net Zero goals.

The agricultural crop residue market held the dominant share of the Biomass Market in 2024.

Based on feedstock type, the market is segmented into dedicated energy crops, agricultural crop residue, forestry residues, sorted municipal waste, and others. Among these, the agricultural crop residue market held a significant share of the market in 2024. The agricultural sector of India produces a substantial amount of waste products, including crop residue, which is now being converted into a source of biomass that businesses are utilizing as a steady feedstock. The push to stop stubble burning in North India also accelerates the pumping of residue and processing activities. This enhanced and affordable availability favors the feasibility of expanding biomass projects and long-term energy contracts.

North India leads the Biomass Market in 2024.

The north of India is the dominant region of the Indian biomass market since its huge agricultural produce generates large amounts of crop residues such as paddy straw, wheat husk, and so on. Also, Punjab, Haryana, and Uttar Pradesh states are some of the large producers of biomass feedstocks, providing a steady supply to energy projects. Adding to this, stubble burning is a serious problem in the region, so there are vigorous policy responses and funding investments in making use of biomass. The dual factor influencing the growth of biomass power and biogas plants is government backing of its efforts and subsidies on crop residue management practices. The availability of resources, policy priority levels, and the urgency of the environment place North India as a leader in the area of biomass energy.

On March 28, 2025, Department of Agriculture and Farmers Welfare (DA&FW)  is primarily supporting the efforts of States of Punjab, Haryana, Uttar Pradesh and NCT of Delhi for combating paddy stubble burning under the Crop Residue Management Scheme being implemented from 2018-19, focusing on both in-situ and ex-situ management of paddy straw. The intervention aims at establishing a robust supply chain of paddy straw for various end user industries in biomass power generation and biofuel sectors.

Biomass Industry Competitive Landscape

The India Biomass market is competitive, with several global and international market players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions.

Top India Biomass Companies

Some of the major players in the market are Punjab Renewable Energy System Pvt. Ltd., Husk Power Systems Pvt. Ltd., Abellon CleanEnergy Limited, Thermax Limited, SHALIVAHANA GROUP, ORIENT GREEN POWER COMPANY LIMITED, A2Z Group, BIOD ENERGY (INDIA) PVT LTD., Universal Biofuels Private Limited (Aemetis, Inc.), Godawari Power & Ispat Limited.

Recent Developments in the India Biomass Market

• On March 23, 2023, the Asian Development Bank (ADB) and SAEL Industries Limited signed loan agreements of up to 7.5 billion Indian rupees (around USD 91.14 million) to promote the generation of biomass energy using agricultural residue, helping diversify India’s energy mix and reduce carbon intensity.

• On August 4, 2021, Mitsui & Co., Ltd. announced that it would invest INR 300 million (approximately USD 4.1 million) in Punjab Renewable Energy Systems Pvt. Ltd. ("PRESPL"), one of the leading biomass supply chain management companies in India.

India Biomass Market Report Coverage

Reasons to Buy the India Biomass Market Report:

• The study includes market sizing and forecasting analysis confirmed by authenticated key industry experts.

• The report briefly reviews overall industry performance at a glance.

• The report covers an in-depth analysis of prominent industry peers, primarily focusing on key business financials, type portfolios, expansion strategies, and recent developments.

• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.

• The study comprehensively covers the market across different segments.

• Deep dive regional-level analysis of the industry.

Customization Options:

The India Biomass market can further be customized as per the requirements or any other market segment. Besides this, UnivDatos understands that you may have your own business needs; hence, feel free to contact us to get a report that completely suits your requirements.