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Decoding India
India's Coal Dependence

India's Coal Dependence

Where does India's electricity actually come from, and how does it compare?

Jun 2026|IMA Research
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India recently crossed 50% non-fossil installed power capacity, meeting its Paris Agreement target years ahead of schedule. It is a genuine achievement. But installed capacity and actual electricity generation are two different things. A solar panel rated at 1 GW does not produce 1 GW around the clock. Coal does. When measured by what actually powers India's homes and factories, coal accounts for 70.8% of electricity generated in 2024, higher than China at 54.3%, Vietnam at 48.1% and far above Germany at 20.6%. The capacity milestone reflects meaningful progress, but the transition remains incomplete when measured by actual power output. With electricity demand continuing to rise rapidly, India is expanding both renewable and coal-based power generation rather than substituting one for the other.

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IMA India's Decoding India is a data-led series that explores the metrics shaping India's economic and business landscape, presented through comparative visuals across Indian states or peer economies. The aim is simple: to make India's progress easier to understand at a glance and to surface insights that matter for decision-makers.