India’s Coal Exports Rise 23.4% to 1.91 Million Tonnes in FY25

India’s coal exports increased by 23.4% to 1.908 million tonnes in the financial year 2024–25, marking a notable rise from 1.546 million tonnes in FY24, according to provisional government data. The increase comes as the government intensifies efforts to promote coal exports and strengthen the country’s energy security through higher domestic output and regional trade.

In value terms, coal exports were estimated at ₹1,828.2 crore in FY25, slightly higher than ₹1,643.4 crore recorded in FY24, the data showed.

Export Growth and Market Reach

India exports coal primarily to neighbouring countries such as Nepal, Bangladesh, and Bhutan, which depend on Indian coal supplies for power generation and industrial use. The latest data highlight a steady rise in cross-border coal trade despite global discussions on transitioning away from fossil fuels.

Government reports suggest India’s export potential could reach up to 15 million tonnes annually, with the majority directed towards regional partners. The country has the capacity to export around 8 MT to Bangladesh, 3 MT to Myanmar, 2 MT to Nepal, and another 2 MT to other nearby nations.

Government Strategy to Promote Exports

The government’s approach focuses on boosting coal exports alongside domestic production to achieve self-reliance and reduce dependence on imported fossil fuels. Policies encouraging coal trade with neighbouring countries aim to create a balanced strategy combining export promotion with import substitution.

By expanding exports, India seeks to leverage its coal reserves to meet regional demand, generate foreign exchange, and strengthen diplomatic and economic ties across South Asia. The move also aligns with the broader goal of ensuring consistent demand for domestic coal production and maintaining steady utilisation of mining capacity.

Economic And Sectoral Impact

Higher coal exports are expected to boost economic activity in mining and logistics sectors. Increased shipments will generate employment opportunities, support local industries, and contribute to government revenues through export earnings and royalties.

Experts note that maintaining efficient supply chains and transparent pricing will be key to sustaining export momentum while meeting domestic requirements. Coal India Limited and other major producers are expected to play a pivotal role in balancing this dual objective.

Read More: Coal India September Output Falls 3.9% To 48.97 MT

Conclusion

The 23.4% surge in India’s coal exports during FY25 underscores the country’s growing role as a reliable regional energy supplier. By promoting exports, enhancing production, and cutting import dependency, India aims to strengthen its energy security and build a more resilient coal ecosystem. As demand from neighbouring countries continues to rise, India’s strategic focus on coal exports is set to play an important role in its economic and energy policy framework.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.