India celebrates historic milestone in coal production
Coal production in India has hit a record high of 1 billion tons in the fiscal year ending March 31, according to Mines Minister G. Kishan Reddy. With its rapidly growing economy, the country largely relies on coal for domestic power generation.
The world’s second biggest consumer of coal after China, India generates some 74% of its electricity from coal-based generation. Meanwhile, the share of coal in the nation’s energy mix amounts to approximately 55%.
India, which extracted 997.83 million tons of coal in the fiscal year of 2023-24, has now joined China as the only nations whose annual coal output exceeds 1 billion tons.
“This achievement will fuel our increasing power demands, drive economic growth, and ensure a brighter future for every Indian,” the minister said on Friday in a post on X, highlighting that coal producers in the country have “not only increased production but also ensured sustainable and responsible mining.”
Prime Minister Narendra Modi hailed India’s historic achievement, calling it a “proud moment for India” and highlighting the government’s commitment to energy security, economic growth and self-reliance.
Increasing domestic coal production has helped reduce imports. Coal purchases from abroad fell by 8.4% from April to December 2024, resulting in approximately $5.43 billion in foreign-exchange savings compared to the same period the previous year, according to the government.
Under its Coal Action Plan, the government has set a production target of 1.08 billion tons for the current fiscal year. While India continues to import coal to meet peak summer demand, the government aims to achieve self-sufficiency in coal by 2026 through increased domestic output and expansion of renewable energy sources.
The Indian economy averaged annual GDP growth of 6.5% in the two decades prior to the Covid-19 pandemic. It expanded by 6.4% in fiscal year 2024-25 and 8.2% the prior fiscal year, making India the world’s fastest-growing major economy. The Reserve Bank of India expects growth of 6.7% in the next fiscal year, which begins in April, driven by an uptick in industrial activity and household consumption.
