India Registers Sharp Drop in Coal Imports in July 2025

Import Reduction in July

India Registers Sharp Drop in Coal Imports in July 2025: India’s coal imports declined by 16.4% in July 2025, falling to 21.08 million tonnes (MT) from 25.23 MT in July 2024. The slowdown was mainly driven by weak electricity consumption during the monsoon and the presence of sufficient domestic stockpiles at power stations. The data was compiled by mjunction services, a joint venture of Tata Steel and SAIL.

Static GK fact: India stands second globally in coal consumption, after China.

Underlying Factors

Vinaya Varma, MD & CEO of mjunction, attributed the dip to three factors:

• Seasonal monsoon slowdown in industrial and power activity
• Ample coal reserves at thermal power plants and industries
• Rise in domestic production, reducing the immediate need for imports

He further stated that a revival in demand could take place around the festive season in late September, when consumption of power and industrial raw materials typically rises.

Static GK fact: The Ministry of Coal manages the sector and was set up in 1974.

Segment-wise Import Data

The July numbers show a stark contrast between two categories of coal:

• Non-coking coal, used largely in power generation, dropped to 54 MT from 16.52 MT a year earlier.
• Coking coal, vital for steel manufacturing, rose to 85 MT, up from 4.81 MT in July 2024.

This reveals a clear divergence: power sector demand weakened while the steel industry maintained strong requirements for imported coking coal.

Static GK Tip: Coking coal is indispensable in the blast furnace route of steel production.

Trends in April–July 2025

Looking at cumulative figures:

• Total imports stood at 97.49 MT against 100.48 MT during the same period last year.
• Non-coking coal imports were 60.62 MT, compared with 65.64 MT previously.
• Coking coal imports increased to 22.22 MT from 20.26 MT.

This points to a steady fall in thermal coal imports, while coking coal dependence has strengthened.

Static GK fact: India has the world’s fourth-largest coal reserves, mainly in Jharkhand, Odisha, and Chhattisgarh.

Broader Implications

The decline signals progress in energy self-reliance through higher domestic coal output, especially for power plants. At the same time, it underlines India’s continued reliance on foreign coking coal to sustain steel production. This dual pattern shows both resilience in domestic supply and dependence on global markets for industrial raw materials.

Static Usthadian Current Affairs Table

India Registers Sharp Drop in Coal Imports in July 2025: