India, home to the world’s fifth-largest coal reserves, and the second-largest consumer of coal, continues to rely on imports to meet the demands of key industries. With the rapid growth of its economy, India’s coal imports saw a slight increase during the April-July period of the 2024-25 financial year. This increase in imports comes even as the country’s coal-based power generation surged, highlighting the balancing act between domestic production and import requirements.
According to official data, coal imports grew by 0.9% during the first four months of FY 2024-25, reaching 90.51 million tonnes (MT), up from 89.68 MT in the same period last year. Non-coking coal imports witnessed a 2% rise, while coking coal imports—primarily used in steel production—declined by 2.6%. In a significant jump, coal imports for July 2024 alone surged by 15.9%, reaching 21.81 MT compared to 18.82 MT in July 2023.
The surge in coal-based power generation, which saw a robust 10.18% growth from April to July 2024, has been one of the primary drivers behind the increase in imports. However, despite the overall rise in coal imports, those intended for blending purposes saw an 8.2% decline, indicating India’s continued efforts to enhance domestic coal production and reduce dependence on foreign coal supplies.
One of the key factors contributing to the increase in coal imports is the reliance on imported coal-based power plants, designed to run exclusively on foreign coal. During the April-July 2024 period, these plants imported 17.69 MT of coal, a significant rise from 10.12 MT in the corresponding timeframe last year. In contrast, coal imports for the non-regulated sector, which includes various industries outside the power sector, saw a sharp 11% decline, falling from 50.53 MT to 44.97 MT.
Despite this marginal increase in coal imports, India’s domestic coal production witnessed a commendable rise. From April to July 2024, coal output reached 321.40 MT, marking a 9.56% growth compared to the same period last year, where production stood at 293.35 MT. This increase reflects the government’s ongoing efforts to boost domestic production and minimise dependence on coal imports.
The Ministry of Coal has been implementing various strategic initiatives aimed at increasing domestic coal production and improving availability. These measures are expected to reduce the need for imports, safeguard foreign reserves, and enhance India’s energy security. By streamlining coal usage and increasing domestic output, the government is working toward achieving self-sufficiency in coal production—an essential step to ensure sustained economic growth and a secure energy future for the country.
As India continues to tackle the complexities of balancing coal imports with domestic production, the government’s proactive approach to bolstering coal output presents a positive outlook for the country’s energy landscape. With continued efforts, India is on track to reduce its reliance on coal imports, contributing to long-term energy sustainability.
