India-US Energy Pact Boosts Coal and Nuclear Cooperation
India and the United States are strengthening their strategic energy partnership, with the recent trade agreement expected to increase imports of coking coal and engagement in nuclear reactor technology. India, the world’s largest buyer of US coal, imported 20 million tonnes of coal from the US in FY25, with coking coal accounting for 40% of total imports. The agreement aligns with India’s plans to expand steel production capacity from 205 mtpa to 300 mtpa by 2030-31 and 500 mtpa by 2047.
The trade pact emphasizes energy commodities as a core element of India’s $500 billion import list from the US. With domestic coal of poor quality for industrial use, India has designated coking coal as a Critical and Strategic Mineral under the MMDR Act to reduce import dependence. So far in FY26, India has already imported 6.04 mt of coking coal from the US, with further increases anticipated to support the country’s steel industry growth.
Nuclear power cooperation is another focus, as India allows private investment in civil nuclear energy and aims to expand capacity from 8.8 GW to 100 GW by 2047. The US has cleared the transfer of small modular reactor (SMR) technology to Indian companies, including L&T, Tata Consulting Engineers, and Holtec Asia, supporting industrial decarbonization and India’s net-zero goals.
Pic courtesy: google/ images are subject to copyright
