India’s coal imports saw a significant increase of 11.4% in the April-August period of FY25, reaching 121.1 million tonnes (MT). This marks a rise from the 108.7 MT of coal imported during the same period last year, underscoring a sustained demand for coal despite efforts to boost domestic production.
In August 2024 alone, coal imports rose by 5.4%, climbing to 20.7 MT from 19.63 MT a year earlier. Non-coking coal imports, primarily used in power generation, saw the largest jump, reaching 13.04 MT compared to 11.89 MT in August 2023. Coking coal, essential for steel production, remained relatively flat at 4.53 MT, down slightly from 4.62 MT in the same period last year.
During the April-August window, non-coking coal imports stood at 78.68 MT, a 14.7% increase from the 68.58 MT imported during the same period in the previous fiscal year. Coking coal imports, on the other hand, showed minimal change, totaling 24.79 MT compared to 24.85 MT last year. This trend reflects a growing reliance on non-coking coal as India continues to expand its power generation capacity.
India's coal imports totaled 268.24 MT in FY24, marking a 7.7% rise from the previous fiscal year. This increasing reliance on imported coal comes despite calls from the Indian government to reduce coal imports and boost domestic production. Coal and Mines Minister G Kishan Reddy has emphasized the need for India to enhance local coal production and decrease its dependency on imports.
The government’s focus on domestic production appears to be yielding results, with coal production rising 6.48% to 384.08 MT in the first five months of FY25, compared to 360.71 MT in the same period last year. This boost in local production is expected to help moderate import levels, though demand from energy-intensive sectors, especially during the upcoming festive season, could push coal imports higher.
India's sustained reliance on coal imports, particularly non-coking coal, reflects both ongoing energy demands and challenges in fully transitioning to renewable energy sources. However, the increase in domestic production suggests that India is on a path to gradually reducing its dependence on imported coal, particularly as local supply chains strengthen.
