Trucks loaded with coal drive to the coal yard at the Deendayal Port in Kandla, in the western state of Gujarat, India, April 5, 2025.
India, the world’s second-largest coal consumer, has significantly increased domestic coal production to meet growing electricity demand and reduce dependence on imports. This achievement aligns with efforts to expand coal-fired power capacity by 80 gigawatts by 2031–32, while also pursuing 500 gigawatts of non-fossil fuel capacity by 2030.
According to commodities consultancy BigMint, India’s thermal coal imports dropped by 8% in the 2024–25 financial year, totaling approximately 169 million metric tons. This decline reflects record domestic coal output and reduced blending with imported coal. Data from Grid India shows that coal-fired generation's contribution to the country’s power mix fell to 49.2% in May, down from 74.0% a year earlier, marking the lowest level since June 2022.
The substantial coal reserves ensure a stable power supply during the monsoon, supporting India’s energy needs while balancing its commitment to diversifying energy sources.
