Coal market in India

Earlier Report Observations

Between 2018 and 2020, India's coal market remained heavily reliant on state-owned Coal India Limited, which consistently contributed over 80% of domestic output. The COVID-19 pandemic in 2020 disrupted mining operations and demand, leading to a decline in production to 753 million tonnes and a contraction in market volume to 970 million tonnes.

A strong post-pandemic recovery from 2021 revived demand from the power and industrial sectors. Production rebounded to 826 million tonnes in 2021 and climbed to 911 million tonnes in 2022, while the total market volume expanded from 1 045 million tonnes to 1 144 million tonnes, supported by sustained output from state-owned producers.

Growth continued through 2023 and 2024, with coal production hitting record levels of approximately 893 million tonnes in 2022-23 and around 998 million tonnes in 2023-24. This expansion was driven by the government's Star Rating Policy for coal mines, which encouraged operational efficiency, and by rising international coal prices due to the West Asia conflict, which boosted the competitiveness of domestic coal and reduced import reliance.

Production coal in India

In kind, 2017-2020, M t

From 2017 to 2020, India ranked as the world's second-largest coal producer.

Top producers of coal, 2017-2020

World map of production of coal, 2017-2020

India's coal production declined for the second year in a row. In 2020, the country produced 752.7 million tonnes of coal, marking a 2.4% decrease compared to 2019. Over the 2017-2020 period, production grew by 4.2%, with an average annual growth rate of 1.4%. The highest production level was recorded in 2018 at 773.0 million tonnes, which also saw the largest increase of 7.1%.

Annual dynamics of production in India in kind, 2017-2020, M t

In value, 2017-2020, M $ US

Following two years of growth, coal production in India saw a decline. In 2020, the output was valued at 58,329 million US dollars, a 29.1% drop from the previous year. Between 2017 and 2020, production fell by 6.9%, translating to an annualized decrease of 2.4%. The peak value occurred in 2019 at 82,282 million US dollars, while the largest increase was in 2018 at 16.9%.

Annual dynamics of production in India in value, 2017-2020, M $ US

Exports coal from India

Exports in kind, M t

After two years of decline, India's coal export volume rebounded. In 2020, the country exported 0.9 million tonnes of coal, up 6.6% from the year before. Over the 2017-2020 period, exports decreased by 11.5%, with an average annual decline of 4.0%. The lowest export volume was in 2019 at 0.9 million tonnes, which also experienced the steepest drop of 12.8%.

Annual dynamics of product's exports from India in kind, 2017-2020, M t

Between 2017 and 2020, Nepal and Bangladesh together accounted for 94.6% of India's total coal exports by volume, with the remaining exports distributed thinly across other markets.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from India in kind, 2017-2020

Exports in value, M $ US

India's coal export value fell for the second consecutive year. In 2020, exports totaled 73 million US dollars, a 22.6% decrease year-over-year. From 2017 to 2020, exports dropped by 20.9%, equating to an annualized decline of 7.5%. The highest value was recorded in 2018 at 96 million US dollars, which also saw the largest increase of 4.0%.

Annual dynamics of product's exports from India in value, 2017-2020, M $ US

Throughout 2017-2020, Nepal and Bangladesh were the primary destinations for India's coal exports in value terms, jointly capturing 85.1% of total flows, while other partners held significantly smaller shares.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from India in value, 2017-2020

Imports coal to India

Imports in kind, M t

Following two years of growth, India's coal imports declined. In 2020, imports amounted to 218.1 million tonnes, a 12.5% contraction from the prior year. Over the 2017-2020 period, imports increased by 10.3%, with an average annual growth rate of 3.3%. The peak import volume was in 2019 at 249.2 million tonnes, while the largest increase occurred in 2018 at 15.0%.

Annual dynamics of product's imports to India in kind, 2017-2020, M t

From 2017 to 2020, Indonesia (46.8% of imports by volume), Australia (20.9%), and South Africa (16.1%) formed the core group of markets for India's coal imports, together representing 83.8% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to India in kind, 2017-2020

Imports in value, M $ US

India's coal import value declined for the second year in a row. In 2020, imports were recorded at 15,871 million US dollars, a 29.8% decrease compared to the previous year. Over the 2017-2020 period, imports fell by 21%, with an average annual decline of 7.6%. The highest value was in 2018 at 24,584 million US dollars, which also saw the largest increase of 22.3%.

Annual dynamics of product's imports to India in value, 2017-2020, M $ US

Throughout 2017-2020, the three largest markets—Australia, Indonesia, and South Africa—remained central to India's coal imports in value terms, together accounting for 79.0% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to India in value, 2017-2020