Nitu Singh, associate director at CareEdge Advisory & Research, stated: “Strong growth momentum backed by structural policy reforms, accelerated mine auctions, and the expected surge in coal-fired power demand to meet rising electricity demand.” He further noted: “With domestic coal production expected to hit 1.15 billion tonnes and meet 83% of the domestic demand in FY26, India is firmly progressing toward coal self-sufficiency.”
In FY 2025, India’s coal production reached an all-time high of 1.0476 billion tonnes, up from 716.1 million tonnes in FY 2021, achieving a compound annual growth rate of approximately 10% over the past five years. This growth has been driven by streamlined regulations, increased private sector participation, and improved mining infrastructure.
Coal consumption in India has also risen significantly, reaching 1,270 million tonnes in FY 2025, compared to 922.2 million tonnes in FY 2021, with a compound annual growth rate of about 8.3%. The power sector remains the largest consumer, accounting for 82% of total coal dispatches in FY 2025. CareEdge noted: “This growth is driven by rising electricity demand across industrial, commercial, and rural sectors, as well as delays in the adoption of renewable energy in certain regions.”
The increase in domestic production has reduced reliance on coal imports, with domestic coal meeting 82.5% of total consumption in FY 2025, up from 77.7% in FY 2021. This shift supports India’s goal of enhancing energy security while addressing the rising energy needs of its growing economy.
