India, Aug. 12 -- India's biofuel economy is no longer a niche experiment - it is now a thriving, interconnected ecosystem that links farmers, fuel producers, automakers, policymakers, and even everyday drivers. From the widespread use of E10 (10 per cent ethanol blend) to the push toward E20 and higher, ethanol blending is reducing crude oil imports, cutting emissions, and creating fresh income streams for rural communities. But as the sector matures, so do the complexities that threaten to slow its momentum.

One pressing challenge is aligning the industry's growth with Corporate Average Fuel Economy (CAFE) norms - the regulatory standards that set limits on fuel consumption and carbon emissions for automakers. For years, carmakers have...