Energy Security and Import Substitution
India is the world's second-largest coal consumer and third-largest producer. Coal accounts for roughly 55% of India's electricity generation. Despite large domestic reserves (estimated at over 319 billion tonnes — the 4th largest globally), India has historically imported coal to meet peak demand and quality requirements. Reducing coal imports is a key plank of both energy security and the Aatmanirbhar Bharat initiative.
- India imported approximately 248 MT of coal in FY 2023-24, costing over $25 billion in foreign exchange.
- Non-coking coal (used in power plants) and coking coal (used in steel) are the two main import categories; India has limited high-quality coking coal reserves.
- National Coal Index (NCI): launched by the Ministry of Coal in 2020 as a price reference index for transparent coal pricing.
- Viksit Bharat 2047 vision targets energy self-sufficiency as a core pillar.
● Tracked since April 02, 2026 · last seen July 07, 2026 · updates as the daily brief publishes
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