India Coal Sector
India’s surging demand for high-grade coking coal presents a significant, long-term opportunity for U.S. coal. Despite record domestic coal production, India will continue to depend on imports to meet its growing steel industry needs—making the U.S. a competitive and reliable partner in this critical sector.
India, the world’s second-largest consumer of coal, surpassed one billion tons of coal production in March 2025, with imports falling 8% to approximately 244 million tons. Coal remains central to India’s energy mix, supplying 45% of India’s total energy and fueling over 74% of its total electricity generation.
Despite being home to the fifth-largest global coal reserves, India faces a domestic shortage of high-grade coking coal, necessitating imports. In April 2025, India imported 600,000 tons of U.S. coking coal—a 62% year-on-year increase. According to Steel Secretary Sandeep Poundrik, by 2030, India’s total coking coal imports are projected to reach 160 million tons, driven by expanding steel production and efforts to diversify suppliers.
On July 1, 2025, India’s Coal Ministry launched a digital “Exploration Module” within its single-window clearance portal to expedite mine project approvals. Additionally, state-owned Coal India is reopening 32 dormant mines and launching five new ones this year to meet demand spikes. Although these initiatives are expected to boost domestic supply, the requirement of high-grade coking coal will continue to remain.
U.S. coal firms are well-positioned to capture a larger share of India’s growing coking coal imports, driven by steel sector growth and India’s push to diversity suppliers. The launch of India’s new digital approvals system may also open the door for bilateral mining technology partnerships. While the domestic production is set to increase, persistent quality gaps in metallurgical coal ensure long-term opportunities for U.S. suppliers. To remain competitive, close monitoring trade talks and logistical partnerships will be essential.
To succeed in the Indian market, U.S. companies should prioritize building relationships with reliable local partners, conduct thorough due diligence, and maintain consistent engagement. The U.S. Commercial Service in India stands ready to provide tailored solutions to help U.S. businesses navigate this complex environment and position themselves for long-term growth.
For more information regarding upcoming events and opportunities in this sector, U.S. firms can contact the U.S. Commercial Service India Energy team or reach out to your nearest local U.S. Commercial Service office in the U.S.