NEW DELHI: Coal continues to play a central role in India's energy landscape, contributing 55% to the national energy mix and fuelling over 74% of total power generation, according to the Economic Survey.
This dominance persists despite the country's growing push for renewable and other clean energy sources. India holds the fifth-largest coal reserves in the world and ranks as the second-largest consumer globally.
The survey noted that India's coal industry reached historic levels in FY25, producing 1,047.52 million tonnes (MT) of coal—a 4.98% increase over the previous year's 997.83 MT. This is the highest coal production ever achieved in the country, underscoring the sector's growth and its significance in meeting India's energy needs.
Total coal supply also rose by 5.38% to 1,025.33 MT in FY25. Strong domestic output contributed to a decline in imports, which fell 7.9% from 264.53 MT in FY24 to 243.62 MT in FY25. The ratio of domestic production to consumption has steadily improved over the past decade, as production growth has consistently outpaced consumption growth, highlighting India's increasing self-reliance in coal.
Meanwhile, India's renewable energy sector has also recorded significant growth. Renewable energy now constitutes 49.83% of the total installed power generation capacity as of 30 November 2025. The country ranks third globally in overall renewable energy capacity and installed solar capacity, and fourth in installed wind capacity.
The total renewable energy capacity has more than tripled over the past decade, rising from 76.38 GW in March 2014 to 253.96 GW by November 2025, reflecting strong policy support, large-scale project execution, and active private sector participation in advancing India's clean energy transition.