India coal import trends show shifting supply sources

India is experiencing shifts in its coal import patterns, driven by economic factors and strategic domestic goals. Between January and October, coal shipments to India dropped 7% year-on-year, largely due to increased import costs resulting from a weaker rupee and higher global prices. While thermal coal demand remains strong for the power sector, domestic mining has not kept pace, leading many power plants to rely on drawing down inventories.

In the coking coal sector, India is diversifying its supply chain to reduce reliance on Australia. Dependence on Australian coking coal fell to 54% in 2025, down from 73% in 2019. While Australia remains the primary source, the market share of other suppliers has grown, including the United States, Russia, Mozambique, and Indonesia.

Under the Aatmanirbhar Coal Mission, the Indian government aims to increase domestic raw coking coal production to 140 million tonnes by 2030. The mission also seeks to raise the blending ratio of domestic coal in steelmaking from 10% to 30%.