India’s thermal coal imports have decreased for the sixth straight month in February 2025, marking the longest decline since February 2022. Imports fell by 15.3% to 12.16 million metric tons for the month, coinciding with a slowdown in manufacturing activity and an increase in domestic coal production.
Over the past six months, imports have declined by 20% to 77.3 million metric tons. This trend aligns with the government’s initiatives to enhance domestic coal production and reduce import dependence. In the fiscal year 2023-24, India’s coal production reached an all-time high of 997.82 million tons, up from 609.18 million tons in 2014-15, reflecting a compound annual growth rate of 5.64% over the past decade.
The reduction in imports has also led to significant financial savings. Between April and November 2024, coal imports declined by 5.35%, resulting in savings of approximately ₹30,007.26 crore ($3.91 billion).
Despite expectations of higher coal use during the summer months due to increased electricity demand, domestic production might offset the need for additional imports. While thermal coal prices have seen a slight rebound, they remain over 30% higher than levels from the latter half of the previous decade. This decline in India’s imports contrasts with growing imports by China, the world’s largest thermal coal importer.
The Ministry of Coal has been implementing various measures to ensure stable coal supplies and bolster energy security, with a focus on reducing reliance on imports while addressing the country’s growing energy needs.
The decline in coal imports reflects India’s ongoing efforts to achieve self-reliance in the coal sector and reduce dependence on foreign coal, aligning with the country’s broader energy security and economic goals.
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