Biofuels are environmentally friendly fuels, and their use would help to solve worldwide concerns about carbon emissions. Biofuels are produced from clean energy bioenergy and thus provide a decisive benefit in sustainable growth and replenishing sources of energy in having met the rapidly growing requirement for diesel fuel associated with India's strong economic growth, and the energy requirements of the vast local population.

Biofuels have the advantages of lowering reliance on crude oil imports, creating a cleaner environment, providing more money to farmers, and creating jobs in rural regions. The biofuels program also aligns with the Indiangovernment's Make in India, Swachh Bharat, and increasing farmer income programs.

Every year on August 10th, World Biofuel Day is commemorated to communicate the importance of non-fossil fuels as a substitute for conventional fossil fuels and to showcase the government's efforts in the biofuel sector. This day also commemorates Sir Rudolf Diesel's 1893 research tests in which he ran an engine on peanut oil. In the following century, his research experiment anticipated that vegetable oil would replace fossil fuels to power various mechanical motors.