India's coal demand is projected to reach 1,755 million tonnes (MT) by 2040, reflecting the nation's ongoing reliance on this fossil fuel for energy and industrial needs. As of 2023, India's coal consumption stood at approximately 1,251 MT, marking a 9% increase from the previous year.

This surge is attributed to robust economic growth, heightened power demand, and significant infrastructure development.

The Indian government acknowledges the pivotal role coal plays in the country's energy landscape. Minister of Coal, Mines, and Parliamentary Affairs, Shri Pralhad Joshi, has emphasized that coal will remain a major energy source in the foreseeable future, with demand expected to peak between 2030 and 2035.

In the fiscal year 2022-23, coal consumption in coal-based power plants increased by 12%, underscoring its continued importance.

Despite global shifts towards renewable energy, India's coal consumption is anticipated to remain substantial. The International Energy Agency (IEA) notes that while renewable energy sources are expanding, they have not yet matched the rapid growth in electricity demand. Consequently, coal continues to fill the gap, especially during periods of low hydropower output or increased power consumption due to heatwaves.

The Indian government is also focusing on increasing domestic coal production to reduce reliance on imports. Investments in infrastructure, such as rail systems for coal transportation, aim to enhance efficiency and meet the rising demand. However, coastal power plants may continue to depend on imported coal due to logistical advantages.

In summary, India's coal demand is projected to reach 1,755 MT by 2040, driven by economic growth and energy requirements. While efforts to boost renewable energy are underway, coal is expected to remain a cornerstone of India's energy strategy in the coming decades.