India’s coal imports fell by over 9 per cent in the first 11 months of the current financial year, reflecting the country’s growing focus on energy self-reliance and reduced dependence on overseas coal. According to the Ministry of Coal, imports declined by 9.2 per cent to 220.3 million tonnes (MT) during the April 2024 to February 2025 period, down from 242.6 MT in the corresponding period of the previous financial year.
This sharp reduction in coal imports translated into foreign exchange savings of approximately $6.93 billion (Rs 53,137.82 crore), the Ministry said in a statement.
The drop was particularly pronounced in the non-regulated sector, where imports fell by 15.3 per cent year-on-year.
The decline in imports came despite a 2.87 per cent increase in coal-based power generation, highlighting a significant shift towards domestic coal consumption. Imports for blending by thermal power plants plummeted by nearly 39 per cent, underscoring the government’s sustained push to curb its reliance on imported coal.
The Ministry attributed this decline to several government initiatives aimed at boosting domestic coal production. These include the Commercial Coal Mining scheme and Mission Coking Coal, which have been instrumental in enhancing domestic output. During the April 2024 to February 2025 period, domestic coal production grew by 5.45 per cent compared to the same period in the previous fiscal year, reflecting the success of these measures.
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India’s coal sector is critical to its rapidly expanding economy, serving as the primary energy source for key industries such as power, steel, and cement.
However, the country continues to face challenges in meeting domestic demand for coking coal and high-grade thermal coal, which remain in short supply. This reliance on imports, particularly for the steel industry, underscores the need for continued investment in domestic coal production.
The Ministry of Coal stated that it is implementing a range of strategic measures to strengthen domestic production and secure coal supplies, aligning with India’s broader goals of energy security and self-reliance.
“As part of the government’s vision for a ‘Viksit Bharat,’ the focus remains on building a sustainable energy framework that supports long-term economic growth,” the Ministry added.
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