India’s Coal: Missed Chances and Lost Potential in the Global Economy

Although India is the third-largest coal production in the world, just a tiny portion of the world’s coal is exported from India. There are several things at play in this circumstance.

High domestic demand: India’s population is enormous and is expanding quickly, which has led to a rise in energy consumption. India’s continued reliance on coal as a major energy source for electrical production has increased demand for the mineral.

Poor quality coal: Lower-grade coal makes up a significant amount of India’s coal reserves, making it less desirable to international purchasers. Because it contains more energy and emits fewer pollutants when burnt, higher-quality coal is often favoured. Due to this, Indian coal is less competitive on the international market.

High transportation costs: Several coal mines in India are situated in distant locations, often far from coastal regions where ports are found. Due to the necessity for long-distance transportation infrastructure, moving coal from these isolated areas to export ports may be costly. This raises the price of Indian coal exports overall.

These limitations have prevented India’s coal exports from having a big impact on the world economy. India actually imports more coal than it exports, making it a net importer of the fuel. The Indian economy incurs significant losses as a result of this trade imbalance each year.

India should think about taking a number of initiatives to boost its contribution to the global economy and increase coal exports:

Purchasing new coal mines: India may boost its output capacity by purchasing new coal mines. This would lessen the need to import coal while helping to fulfil domestic demand. However, it is crucial to strike a balance between this strategy and the long-term need to switch to cleaner and more sustainable energy sources.

India might investigate new methods and technology to raise the calibre of its coal. Modern techniques like coal washing and beneficiation may clean up the coal, increase its energy content, and lower the pollutants that come with burning it. This would improve Indian coal’s competitiveness on the international market and make it more enticing to foreign consumers.

lowering transportation costs: India might make investments in the construction of transportation infrastructure to solve the issue of high transportation expenses.

This entails constructing new roads, trains, and infrastructure to link coal mines and neighbouring ports. Transporting coal for exports would be simpler and more affordable with improved connections.

India may be able to expand its coal exports and boost its economic output by putting these steps into place. However, it is important to recognise that coal is a fossil fuel with major environmental effects, such as air pollution and greenhouse gas emissions.

Global demand for coal is anticipated to fall as the globe moves towards greener and more sustainable energy sources, such renewable energy and natural gas.

Therefore, to satisfy its energy demands while minimising environmental impact, India’s long-term energy policy should involve a gradual shift away from coal and a higher emphasis on renewable energy sources.