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India’s Energy Sector Achieves Strong Growth in FY 2023-24 Amid Rising Demand

According to the Ministry of Statistics & Programme Implementation report on “Energy Statistics India 2025”, India’s energy sector witnessed significant growth in the financial year 2023-24, fuelled by rising demand from industries, transportation, and households. The country continued its momentum toward energy security while balancing urbanization, industrialization, and its long-term vision of becoming a developed economy by 2047.

Coal and Fossil Fuel Reserves

As of March 31, 2024, India’s total coal reserves stood at 389.42 billion tonnes, with Odisha holding the largest share (25.47%), followed by Jharkhand (23.58%) and Chhattisgarh (21.23%). The country’s crude oil reserves were estimated at 671.40 million tonnes, with Western Offshore fields accounting for nearly 32%. Meanwhile, natural gas reserves reached 1,094.19 billion cubic meters, primarily located in the Western and Eastern Offshore regions.

Renewable Energy Potential

India’s estimated renewable energy potential surged to 2,109,655 MW by the end of FY 2023-24. Wind energy, at 150 meters hub height, dominated the mix with a potential of 1,163,856 MW (55.17%), followed by solar power at 748,990 MW (35.50%) and large hydro projects at 133,410 MW (6.32%).

Coal Production and Energy Supply

Coal continued to be India’s primary energy source, supplying nearly 79% of the country’s domestic energy needs. Coal production rose by 11.71% year-on-year to 997.83 million tonnes in FY 2023-24, up from 893.19 million tonnes in the previous year. Additionally, India’s coal washeries capacity expanded from 131.4 MTY in 2015 to 257.79 MTY in 2024.

Growth in Renewable Energy Generation

The country’s electricity generation from renewable sources witnessed substantial growth over the years. From 205,608 GWh in FY 2014-15, renewable power generation increased to 370,320 GWh in FY 2023-24, achieving a compound annual growth rate (CAGR) of 6.76% over the decade.

Rising Energy Imports

Despite increasing domestic production, India remained heavily reliant on energy imports. In FY 2023-24, coal imports rose by 11.2% to 262.99 million tonnes. Natural gas imports saw a significant surge of nearly 21%, reaching 31.8 billion cubic meters, while crude oil imports slightly increased from 232.70 million tonnes to 234.26 million tonnes.

Electricity Availability and Transmission Losses

India’s net electricity availability increased by 7.25% over the previous year, reaching 1,646,998 GWh in FY 2023-24. However, transmission and distribution losses remained at 17.08%, reflecting ongoing challenges in power infrastructure efficiency.

Primary Energy Supply and Consumption Trends

The Total Primary Energy Supply (TPES) rose by 7.8% in FY 2023-24, reaching 903,158 KToe. Coal remained the dominant source (60.21%), followed by crude oil (29.83%) and natural gas (6.99%). Renewable energy also recorded robust growth, with supply increasing from 17,682 KToe in FY 2014-15 to 31,847 KToe in FY 2023-24. Energy generated from wind, solar, and other sources (excluding large hydro) surged by nearly 210% over the past decade.

Sector-Wise Energy Consumption

India’s Total Final Energy Consumption (TFC) rose by 38% since 2014-15, reaching 613,605 KToe in FY 2023-24. Among end-use sectors, industry recorded the highest growth (13.2%), followed by transportation (10.7%) and commercial/public services (6.6%). The agriculture sector also showed a steady increase in energy use, growing at a CAGR of 4.38% over the past decade.

Per Capita Energy and Electricity Consumption

The country’s per capita energy consumption grew by over 25% in the past decade, reaching 18,410 MJ per person in FY 2023-24. Similarly, per capita electricity consumption rose from 748 kWh per person in FY 2014-15 to 1,106 kWh per person in FY 2023-24, marking a 48% increase.

Energy Efficiency and Import Dependency

India’s energy intensity showed slight improvement, requiring 0.2180 MJ of energy per INR of GDP in FY 2023-24, down from 0.2192 MJ in the previous year. However, energy import dependency remained high, with crude oil imports covering nearly 89% of demand, natural gas imports at 46.6%, and coal imports at 25.86%.

Conclusion

India’s energy sector continued its growth trajectory in FY 2023-24, as highlighted in the Ministry of Statistics’ Energy Statistics India 2025. The report reflects rising coal production, expanding renewable capacity, and increasing energy demand across industries and households. However, the country’s heavy reliance on imports underscores the need for further advancements in domestic energy production, efficiency, and sustainability.