India’s thermal coal imports are expected to decline for the second straight year in 2025 due to reduced dependence on coal for power generation, slowing economic activity, and high inventories. Imports fell around 2% to 173 million metric tons in 2024, driven by increased domestic production and the rise of petroleum coke as a preferred alternative for the cement industry.
India’s thermal coal imports are forecasted to drop for the second consecutive year in 2025, as the country continues to reduce its reliance on coal for power generation. The decline is attributed to several factors, including slowing economic activity, high inventories, and an increase in domestic coal production.
India, the world’s second-largest importer of thermal coal, has seen a shift in its energy mix, with an increasing share of renewables and a decreasing dependency on coal. In 2024, imports of thermal coal fell by around 2%, totaling 173 million metric tons, driven by rising domestic production and competitive alternatives such as petroleum coke, which is now more widely used by industries like cement manufacturing.
According to industry officials, the decline in thermal coal imports in 2025 is also influenced by India’s efforts to improve coal inventory management. Additionally, the reduced economic activity, especially in sectors like power generation, has further lessened the demand for imported coal.
While domestic coal production has increased, the country continues to focus on long-term energy sustainability, with plans to further reduce its reliance on coal. The transition to cleaner energy sources like wind and solar is part of India’s broader goal to combat climate change while meeting growing energy demands.
The government’s initiatives to increase domestic coal production and enhance energy efficiency are expected to sustain this downward trend in imports, supporting India’s efforts to achieve energy security while reducing its carbon footprint.
As India’s energy landscape evolves, the decline in thermal coal imports signals a positive shift towards diversification and sustainability in the country’s power sector.
