India’s coal production to hit 1.15 billion tonnes in FY 2026

This will meet over 80% of the local demand.

India’s coal production is projected to reach 1.15 billion tonnes in fiscal year (FY) 2026, according to CareEdge Advisory & Research.

In a new report, Nitu Singh, associate director at CareEdge Advisory & Research, said the growth is thanks to “strong growth momentum backed by structural policy reforms, accelerated mine auctions, and the expected surge in coal-fired power demand to meet rising electricity demand.”

“With domestic coal production expected to hit 1.15 billion tonnes and meet 83% of the domestic demand in FY26, India is firmly progressing toward coal self-sufficiency,” he added.

In FY 2025, India’s domestic coal production reached a record high of 1.0476 billion tonnes, jumping from 716.1 million tonnes (MT) in FY 2021, with a compound annual growth rate (CAGR) of approximately 10% over the past five years.

Meanwhile, total coal consumption has increased to 1270.0 MT in FY 2025 from 922.2 MT from FY 2021, reflecting a CAGR of approximately 8.3%.

“This growth is driven by rising electricity demand across industrial, commercial, and rural sectors, as well as delays in the adoption of renewable energy in certain regions. The power sector continued to be the largest consumer of domestic coal, accounting for 82% of the total dispatches of 1,270 MT in FY 2025,” CareEdge said.