Between April 2024 and February 2025, India’s coal imports fell by 9.2% to 220.3 million tonnes (MT), down from 242.6 MT in the same period the previous year.
For the full financial year 2023–24 (FY24), total coal imports stood at 268.24 MT, a 7.7% increase over the previous year. However, the reduction in imports during the latter months helped the country save approximately $6.93 billion (₹53,137.82 crore) in foreign exchange.
The most notable decline was seen in the non-regulated sector (excluding power), where imports dropped 15.3% year-on-year (YoY).
Interestingly, even as coal-based power generation rose by 2.87% YoY during April–February of FY25, coal imports for blending at thermal power plants saw a steep 38.8% decline.
Despite being home to the fifth-largest coal reserves in the world, India continues to rely on imports for specific types of coal, especially coking coal and high-grade thermal coal, which are not abundantly available locally.
As the world’s second-largest coal consumer, coal remains central to India’s energy strategy powering more than 74% of electricity generation and supporting core industries such as steel and cement. The gap between domestic supply and demand has historically necessitated coal imports to meet rising energy requirements.
To bridge this gap and strengthen energy security, the Ministry of Coal is pushing forward with several initiatives, including commercial coal mining and Mission Coking Coal. These are aimed at boosting domestic availability and reducing import dependence.
These efforts have already yielded significant results. In FY25, coal production surged nearly 59% YoY, crossing the 1 billion tonne (BT) mark for the first time, reaching 1.04 BT up from 997.83 MT in FY24. Coal dispatches also exceeded 1 BT, climbing to 1.02 BT, a 5.34% increase from 973.01 MT in the previous fiscal.
By prioritizing domestic coal output, the government is advancing toward the Viksit Bharat vision and building a more sustainable, secure, and self-reliant energy framework to support long-term economic growth.