Coal Remains the Backbone of India's Energy Sector

News at PT. Surya Bumi Adhikari

Jakarta, TAMBANG - Coal remains India's primary energy source, despite global market uncertainty. The latest data shows that from January to July 2025, India ranked second in the world in coal consumption, with a total of 795 million metric tons. During the same period, production reached 633 million tons, and imports reached 162 million tons.

"In the January–July 2025 period, India ranked second in the world in coal consumption, reaching 795 million metric tons, production of 633 million tons, and imports of 162 million tons," said Director of iEnergy Natural Resources Limited, Vasudev Pamnani at CT Asia 2025 in Badung, Bali, quoted Monday (29/9).

He emphasized that energy needs remain a strategic issue, as demand from developing countries increases as they strengthen their industrial base and infrastructure.

"Energy isn't going anywhere. The world, especially developing countries, will always need energy for economic growth, industrialization, and infrastructure development," Vasudev said.

According to him, despite the growing trend of energy transition, coal demand in India will remain stable and even increase in the medium term.

"This isn't just a story of tradition, but also of transition. India continues to need coal, both from domestic production and imports," he said.

He added that internal reports also noted that India's coal demand would remain positive amidst global price pressures, geopolitical tensions, and changes in international tariff policies.

“Energy demand continues to grow, and coal remains a key part of India’s energy story,” he stressed.

India currently ranks second in the world, after China, in coal production, imports, and consumption. Through 2024, India's coal consumption reached hundreds of millions of tons, with the majority used in the steel, cement, and coal-fired power generation sectors.

In the steel sector, coal consumption reached 116 million tons last year. Meanwhile, the cement industry relies on around 30 million tons annually. Coal-fired power plants remain the backbone of India's electricity supply, contributing the largest share to total national coal consumption.

India itself has significant coal reserves of 378 billion tonnes, making it one of the largest coal reserves in the world.