New Delhi, 11/02/2025: India’s energy landscape is poised for a transformative decade, yet coal continues to occupy a pivotal role in powering the nation’s growth. The Ministry of Coal has projected that the country’s coal demand will surge to 1,462 million tonnes (MT) by 2030 and is expected to reach an extraordinary 1,755 MT by 2047, reflecting both the scale of India’s industrial expansion and the continuing reliance on thermal power to meet electricity needs.
India is endowed with the world’s fifth-largest geological coal reserves and ranks as the second-largest consumer globally. Coal currently accounts for approximately 55% of the country’s energy mix, underscoring its indispensable role in sustaining economic growth and industrial development. Over the past decade, coal-based thermal power plants have consistently contributed more than 74% of India’s total power generation, highlighting the sector’s critical position despite the rapid rise of renewable energy sources. While solar, wind, and other clean energy initiatives are expanding, projections indicate that coal will maintain a 55% share in the energy mix by 2030 before gradually tapering to around 27% by 2047, signaling a gradual but sustained transition toward cleaner energy.
Recent performance metrics illustrate the sector’s robustness. According to the Index of Eight Core Industries (ICI), coal production and associated activities recorded a strong growth of 5.3% in December 2024, with the index reaching 215.1 points, up from 204.3 points in December 2023. On a cumulative basis, from April to December 2024, the coal industry’s index surged to 177.6 points from 167.2 points in the previous year, registering a growth of 6.2% the highest among all eight core industries. This demonstrates coal’s ongoing relevance not only as a primary energy source but also as a significant contributor to industrial performance and economic stability.
Despite the government’s ambitious renewable energy targets, including achieving 500 GW of non-fossil capacity by 2030, coal remains central to India’s energy security strategy. It provides a dependable base load power supply to complement intermittent renewable sources, ensuring consistent electricity availability for households, industry, and critical infrastructure. The coal sector’s growth, coupled with modernization of mining operations, introduction of advanced technologies, and improved logistics, is expected to enhance productivity and environmental efficiency in the coming years.
As India navigates the dual challenge of meeting rising energy demand and transitioning toward sustainable energy, coal’s role is projected to remain foundational. The sector will continue to serve as a reliable backbone of power generation, enabling economic growth while supporting the country’s gradual shift to a diversified and more environmentally sustainable energy mix by mid-century.
