Coal Imports in India for FY25 have significantly decreased, which has helped the economy save more foreign exchange. In FY25, India’s coal imports dipped by 7.9% to ₹243.62 million tonnes (MT), and this has saved US$7.93 billion (₹60681.67 Crore) of foreign exchange for the country. 

Reduced Dependency on Imports

As the government has been trying to reduce dependency on imports of various products, coal is one of the top products on the list. While coal imports in FY25 successfully reduced, they didn’t fail to boost the power generation from coal. Coal-based power generation increased by 3.04% YoY while increasing foreign exchange savings. 

On the other hand, the imports for blending by thermal power plants were also significantly pulled down by 41.4%. This indicates the country’s effort to reduce the import dependency and build self-reliance when it comes to coal production. 

The drop in coal imports felt even more in the non-regulated sector, which excludes the power sector. Here, the coal imports declined by 8.95% YoY. 

Initiatives To Boost Coal Production  

This growth in coal production and India becoming self-reliant and reducing import dependency have been the results of multiple initiatives taken by the centre. It includes – 

• Commercial coal mining 
• Mission coking coal

Both these initiatives helped the country increase the output of coal in FY25 by around 5% compared to the previous fiscal. 

Importance of Coal Imports and Outlook

While the country is trying to reduce its coal imports, India’s coal sector is pivotal in economic growth. It is one of the primary sources of energy for multiple industries like steel, power, cement, and others. 

Thus, while the target is to reduce the import of coal, the domestic production doesn’t meet the demand for coal, so imports will continue. It is mainly for the coking coal where domestic production doesn’t meet the demand, and also for high-grade thermal coal. Both these are in short supply within the country, and thus importing these types of coal is necessary mainly for the steel industry. 

Source: MoneyControl

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