India’s biogas industry is gearing up for a significant investment surge, with estimates suggesting that the sector could attract more than ₹5,000 crore in funding during the financial year 2026-27, according to the Indian Biogas Association (IBA). 
The association highlighted strong investor interest and expanding market activity, particularly in the compressed biogas (CBG) segment, as key drivers of this growth. Over 100 CBG facilities have already been commissioned across the country, and government data shows that 94 plants sold over 31,400 tonnes of CBG in FY 2024-25, reflecting widening market adoption. 
Industry experts say there is considerable room to enhance productivity, especially within the millions of small-scale traditional biogas systems still in use. At the same time, medium-sized plants are gaining traction thanks to their benefits in providing cleaner cooking fuel, boosting rural employment and supplying organic manure. 
To further strengthen the sector, the IBA expects more CBG projects to be commissioned alongside improvements in feedstock supply chains and the implementation of unified policy frameworks. These measures could play a major role in scaling up adoption across India. 
A notable boost is also expected from recent policy changes on taxation. The association pointed to a reduction in the GST rate for the CBG sector, which has made investments more viable and is likely to encourage further capital inflows over the coming years. 
According to IBA Chairman Gaurav Kedia, the easing of tax provisions and stronger business conditions could help unlock even more investment, directly amplifying growth in the short to medium term. Looking ahead, the broader CBG industry is projected to expand substantially by 2030. 
As India intensifies its focus on renewable energy and low-carbon fuels, growth in the biogas and CBG sectors is expected to play a crucial role in reducing dependence on fossil fuels and promoting sustainable rural economies. 
