According to a joint report prepared by EY-Parthenon and the Indian Steel Association (ISA), India's coking coal imports are expected to increase by approximately 42% to reach 115 million tonnes by the 2030 fiscal year, in line with rising demand in the country’s steel sector.
The report notes that imports, which reported 81 million tonnes in the 2025 fiscal year, will continue to grow with the goal of increasing steel production capacity to 300 million tonnes. Coking coal demand is expected to rise from 87 million tonnes in FY2025 to 135 million tonnes in FY2030 — a 55% increase.
The report, titled “India’s Coking Coal Strategy: Building Resilience through Innovation, Sustainability, and Policy,” emphasizes that India, the world’s second-largest steel producer, is heavily dependent on coking coal, with 95% of total demand coming from the steel industry.
To reduce this dependency, the government aims to increase domestic raw coking coal production to 140 million tonnes by 2030, with 105 million tonnes coming from Coal India and 35 million tonnes from private sector companies. However, the fact that the washing capacity is limited to only 15 million tonnes indicates that dependence on imports will show to continue process.
Vinayak Vipul, Partner at EY-Parthenon Business Consulting, stated that India's steel ambitions cannot be achieved without reducing reliance on imported coking coal:
“Although domestic production is projected to double by 2030, imports will continue to play a crucial role in meeting demand. This dependency makes the sector vulnerable to price volatility and supply chain shocks. India must enhance resource diversification and invest in technologies that support the transition to low-carbon steel to unlock the true value of its reserves.”
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