Coal Still Reigns Supreme in India’s Energy Mix Despite Renewables Surge

Coal remains the backbone of India's energy economy in 2025, accounting for 48% of the nation's total energy needs and firing nearly half of its 466 GW installed capacity. Production saw an all-time high of 997.82 million tonnes during FY 2023-24, with dispatches rising over 5% year-on-year and impo...

Coal remains the backbone of India's energy economy in 2025, accounting for 48% of the nation's total energy needs and firing nearly half of its 466 GW installed capacity. Production saw an all-time high of 997.82 million tonnes during FY 2023-24, with dispatches rising over 5% year-on-year and imports dropping sharply as domestic production picked up pace. Despite a quick spurt in solar and wind—renewables now account for over 21% of installed capacity—coal's dominance continues, driven by industrial demand and energy security needs. State revenues from coal royalties and GST are huge, while new mines and safety reforms continue to provide push to growth. As India targets net-zero by 2070, coal's pivotal position is going to remain even as the shift towards cleaner energy gathers pace. Source: PIB, India Briefing, Energy Statistics India 2025