<p>The social and economic development of India has elevated a considerable population from poverty and the concomitant modernization of societal structures. The country’s energy security has changed due to this advancement, though, as it has increased reliance on non-renewable energy sources. The dependence on these sources severely affects the climate by emitting greenhouse gases and other harmful substances that contribute to climate change and disrupt the natural balance of the environment by decreasing reservoirs of fossil fuels. In response, India initiated various policies and actions to protect our diverse nature and set a target to switch its energy demand from non-renewable to renewable. India is working to produce more renewable energy such as biofuel to lessen its reliance on and consumption of fossil fuels. Biofuel production is one of the solutions to climate change and pollution. Despite setbacks such as supply shortages and global concerns about food security, India aimed to achieve a 20% blend of biodiesel and ethanol by 2017, as delineated in the National Policy on Biofuels (2009). This scientific investigation focuses on the systematic examination of governmental policies, such as the National Policy on Biofuel (2018), Bharat Stage Emission Standards (BSES), an ethanol blending program, Pradhan Mantri JI-VAN Yojana, and GOBARdhan, and recent implementations to elucidate the biofuel landscape and also highlights the state policies and its challenges.</p> Graphical Abstract <p></p>