India’s coal exports surge 23% in FY25 amid rising regional demand

By Admin

08 Oct, 2025

India’s coal exports witnessed a robust growth of 23.4% year-on-year, reaching 1.91 million tonnes in FY 2024–25, up from 1.55 million tonnes in the previous fiscal year. This surge underscores the government’s strategic focus on leveraging growing regional demand for fossil fuels and expanding India’s footprint in neighbouring markets.

Steady Demand from Neighbouring Nations
India primarily exports coal to Nepal, Bangladesh, and Bhutan, countries that continue to show consistent demand for Indian coal due to proximity and cost competitiveness. These regional partners rely on Indian coal to meet their energy and industrial requirements, helping India strengthen its position as a key supplier in South Asia.

Export Value Trends
Despite higher export volumes, the value of coal shipments stood at ₹1,643.4 crore in FY25, compared to ₹1,828.2 crore in FY24. The decline in export value reflects lower global coal prices and softer demand conditions in certain segments, even as the overall quantity exported increased significantly.

Government’s Energy Self-Reliance Push
According to officials, expanding exports while simultaneously boosting domestic coal production and reducing import dependence is central to India’s broader energy self-reliance strategy. The government aims to ensure a balanced approach that strengthens both domestic availability and export potential, contributing to economic growth and energy security.

Potential for Future Expansion
A previous study suggested that India could export up to 15 million tonnes of coal annually to neighbouring countries 8 million tonnes to Bangladesh, 3 million tonnes to Myanmar, 2 million tonnes to Nepal, and 2 million tonnes to other regional markets. This highlights significant untapped potential in the regional coal trade, particularly as countries in South Asia continue to industrialize and modernize their power sectors.

Strengthening Energy Security and Economic Growth
The Ministry of Coal believes that scaling up production and exports will not only generate employment and enhance government revenues, but also bolster India’s energy security. Reduced dependence on imports will protect the economy from global price fluctuations, while increased reliance on domestically mined coal reinforces the nation’s long-term energy resilience.

With regional demand on the rise and the government’s proactive initiatives in place, India’s coal sector appears poised for steady expansion paving the way for a more secure, self-reliant, and economically robust energy future.