India has made significant strides toward energy self-sufficiency as coal imports during the fiscal year 2024-25 fell by 7.9%, totaling 243.62 million tonnes (MT) compared to 264.53 MT in FY 2023-24. This reduction marks a key milestone in India’s efforts to cut down on dependency on imported coal and resulted in estimated foreign exchange savings of $7.93 billion (₹60,681.67 crore).
Significant Decline in Non-Regulated Sector Imports
The decline in coal imports was especially notable in the Non-Regulated Sector (NRS), which includes industries outside the power generation segment such as cement, steel, and other manufacturing units. This sector witnessed a sharper 8.95% year-on-year fall in coal imports, reflecting a conscious shift toward the utilization of domestic resources.
Notably, coal-based power generation in India rose by 3.04% in FY 2024-25 compared to the previous year, yet coal imports for blending in thermal power plants saw a sharp 41.4% decline. This contrast highlights improved domestic coal availability and greater efficiency within the power sector.
Government Reforms Drive Import Reduction
The sharp reduction in imports is a direct result of proactive initiatives undertaken by the Government of India, aimed at bolstering indigenous coal production. Programs such as Commercial Coal Mining and Mission Coking Coal have played a vital role in enhancing coal output and diversifying sources of supply within the country.
Thanks to these efforts, India witnessed an encouraging 5% growth in domestic coal production during FY 2024-25. This growth not only supported the country’s energy needs but also contributed to its broader economic agenda by decreasing its reliance on international coal markets.
Coal: Backbone of India’s Industrial Growth
Coal continues to be the cornerstone of India’s energy infrastructure, powering critical sectors like electricity, steel, cement, and more. As a nation with one of the fastest-growing economies, ensuring a reliable and cost-effective coal supply is essential for sustaining industrial expansion and infrastructural development.
Despite progress in domestic production, India continues to face challenges in its coal ecosystem, particularly due to limited reserves of coking coal and high-grade thermal coal. These specific coal types are crucial for sectors like steel, making selective imports unavoidable even amid efforts to achieve self-reliance.
Strategic Measures for a Self-Reliant Energy Future
The Ministry of Coal has been at the forefront of executing strategic measures to reduce dependency on imports while ensuring a consistent and high-quality supply of coal. By optimizing production capabilities and streamlining logistics, the ministry is aligning its strategies with the national vision of “Viksit Bharat” (Developed India).
Through continued emphasis on exploration, adoption of modern mining technologies, and opening up the sector to private participation, India aims to not only meet domestic demand but also build a resilient and sustainable coal economy.
Toward Energy Sovereignty
India’s significant reduction in coal imports and the resulting foreign exchange savings mark a turning point in its journey toward energy sovereignty. As the country progresses toward its developmental goals, the focus remains on building a robust, self-reliant energy framework that minimizes external dependencies, maximizes domestic potential, and supports long-term economic growth.
With a strategic vision and sustained policy support, India’s coal sector is poised to play a crucial role in powering the nation’s ambition of becoming a $5 trillion economy while securing its energy future.
