Indian Power & Coal Sector
India’s power demand continues to be underpinned by strong macroeconomic fundamentals, with GDP growth of 6.5% and sustained momentum in industrial activity, infrastructure development, and urbanisation.
As of 2025, India’s installed power capacity stands at 475GW, with thermal power remaining the dominant source, accounting for over ~74% of total electricity generation. While renewable capacity additions are accelerating, coal-based generation continues to provide critical baseload and grid stability, enabling reliable power supply during peak demand periods. During 2025, zero power shortages were recorded, reflecting improved system resilience and supply adequacy.
While renewable capacity additions are accelerating, coal-based generation continues to provide critical baseload and grid stability, enabling reliable power supply during peak demand periods. The Government of India has reaffirmed the strategic role of thermal power, approving ~97 GW of additional thermal capacity by FY35, to support the incremental surge in power demand expected for the next decade.
The coal sector remains structurally supportive of thermal generation. Domestic coal production is targeted at ~1.15 billion tonnes in FY26, supported by mine restarts, commercial mine auctions, and policy reforms aimed at reducing import dependence. Imports remain complementary during peak demand periods, while pricing moderation in domestic auctions has eased short-term procurement costs.
Overall, India’s power and coal sectors are positioned for stable, demand-led growth, with thermal power continuing to play a central role in energy security, grid reliability, and economic expansion.