India is progressing rapidly towards providing access to electricity and clean cooking by integrating a high share of renewable energy sources in the country's energy mix. Recently, the Union New and Renewable Energy Minister Prahlad Joshi, on the sidelines of the Resilient Futures Summit 2026, underlined India's achievement of sourcing 50 per cent of its electricity from non-fossil fuel sources five years ahead of its own target.
While India's focus has been on expanding the installed capacity of power generation from renewable sources, it is still heavily reliant on primary fossil fuels. Coal remained the backbone of India’s energy supply, accounting for nearly 79% of the total energy supplied domestically in FY 2024-25, as per the Energy Statistics India 2026 report.
In this article, we will explore the key fossil fuel energy sources in India's energy mix.
What are the major fossil fuel energy sources in India?
To meet the domestic demand, India relies heavily on the import of coal, crude oil and natural gas. The major source of energy comes from coal (including lignite) (59.21 per cent), which is followed by crude oil (29.79 per cent) and natural gas (7.12 per cent).
#1 Coal
Coal, the largest domestic energy source in India, accounts for 59.21 per cent in the country's energy mix.
Coal generates nearly 79 per cent of total energy supply in FY 2024-25, as per Energy Statistics India 2026 report.
Coal production grew by 4.98%, reaching at 1047.52 million tonnes, up from 997.83 million tonnes.
India has the world’s fifth largest reserves of coal. As of 1 April 2025, the total estimated coal reserves were 400.72 billion tonnes.
The distribution of coal reserves in India is concentrated in a few states like Odisha, Jharkhand and Chhattisgarh.
Lignite, known as "brown coal," is another vital fossil fuel type of coal. It's primary use is for thermal power generation.
As of 1 April 2025, India has 47.37 billion tonnes of estimated lignite reserves. The highest reserves of lignite are located in the state of Tamil Nadu (79 per cent).
Out of the total lignite reserves in the country, proven reserves of lignite account for approximately 17 per cent.
#2 Crude Oil
Oil is a mixture of hydrocarbons, formed from over millions of years from the buried, decomposed remains of prehistoric marine organisms.
Oil is refined into products like gasoline, diesel, and plastics. Oil is a major fossil fuel used for energy production.
Oil is the second-largest fossil fuel energy source after coal. It accounts for approximately 29.79 per cent of India's energy mix.
The contribution of oil to total electricity generation is very low, estimated about 0.2 per cent of total electricity generation.
While oil is critical for transport, its use for power generation is minimal.
India relies on imports for 85 to 90 per cent of its crude oil needs, highlighting high vulnerability to geopolitical risks.
#3 Natural Gas
Natural gas is a fossil fuel formed from the buried remains of plants and marine microorganisms that lived millions of years ago.
Natural gas accounts for 7.12 per cent in India's energy mix.
As of early 2026, natural gas contributes a relatively small portion of India’s power generation, with an installed capacity of roughly 20.1 GW.
India aims to increase the share of natural gas in the energy mix to 15 per cent by 2030.
As of 1 April 2025, India has 1,073.01 billion cubic meter of estimated natural gas reserves.
The largest reserves of natural gas in India are located in the Western Offshore region, which holds approximately 32 per cent of the total natural gas reserves. The Eastern Offshore accounts for 25 per cent of the reserves.
