Coking coal to nuclear reactors: India-US pact fuels strategic energy partnership
India has been gradually increasing energy commodities import from US. Being the sixth largest energy trade partner of India, the trade agreement with US could see increased coking coal imports and engagement in nuclear reactors technology.
- Feb 7, 2026,
- Updated Feb 7, 2026 4:57 PM IST
US has been a key player in meeting India’s growing energy demand, especially of coking coal required in steel industry with imports gradually increasing in last few years. The India-US trade agreement announcement will boost the purchase of energy commodities and civil nuclear technology.
The joint agreement released on February 7 mentions of US energy products as a key element among India’s $500 billion US shopping list. Indian is the largest buyer of US coal globally with coking coal contributing 40% of the total 20 million tonnes (mt) of coal imported by India from the US in FY25.
India has coal availability but the quality is poor, leading to import of metallurgical coal for industrial use. Last month, the Centre has notified coking coal as a Critical and Strategic Mineral under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) to end import dependence.
According to Union Ministry of Coal, India has already imported 6.04 mt of coking coal from the US till November, 2026 (FY26). Vikram Dev Dutt, Secretary in the Ministry of Coal, had said that India sees potential for importing more coal from the US, as the country is looking at increasing its steel manufacturing capacity.
India is the world's second largest steel manufacturer with a capacity of about 205 million tonnes per annum (mtpa) with plan to take it to 300 mtpa by 2030-31 and 500 mtpa by 2047.
Nuclear power is another key area of cooperation between the two countries. India has passed a bill allowing private investment in the civil nuclear power sector. US based companies in nuclear sector are already in talks with Indian players.
In March 2025, the US Department of Energy cleared Holtec International’s application to design and build nuclear reactors in India. It allows for the transfer of unclassified small modular reactor (SMR) technology to three companies in India — L&T, Tata Consulting Engineers and Holtec’s regional subsidiary, Holtec Asia.
India has set a target of achieving 100 GW of nuclear power by 2047 from 8.8 GW now, with a focus on small modular reactors for industrial decarbonisation as part of the country’s net-zero target.
US has been a key player in meeting India’s growing energy demand, especially of coking coal required in steel industry with imports gradually increasing in last few years. The India-US trade agreement announcement will boost the purchase of energy commodities and civil nuclear technology.
The joint agreement released on February 7 mentions of US energy products as a key element among India’s $500 billion US shopping list. Indian is the largest buyer of US coal globally with coking coal contributing 40% of the total 20 million tonnes (mt) of coal imported by India from the US in FY25.
India has coal availability but the quality is poor, leading to import of metallurgical coal for industrial use. Last month, the Centre has notified coking coal as a Critical and Strategic Mineral under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) to end import dependence.
According to Union Ministry of Coal, India has already imported 6.04 mt of coking coal from the US till November, 2026 (FY26). Vikram Dev Dutt, Secretary in the Ministry of Coal, had said that India sees potential for importing more coal from the US, as the country is looking at increasing its steel manufacturing capacity.
India is the world's second largest steel manufacturer with a capacity of about 205 million tonnes per annum (mtpa) with plan to take it to 300 mtpa by 2030-31 and 500 mtpa by 2047.
Nuclear power is another key area of cooperation between the two countries. India has passed a bill allowing private investment in the civil nuclear power sector. US based companies in nuclear sector are already in talks with Indian players.
In March 2025, the US Department of Energy cleared Holtec International’s application to design and build nuclear reactors in India. It allows for the transfer of unclassified small modular reactor (SMR) technology to three companies in India — L&T, Tata Consulting Engineers and Holtec’s regional subsidiary, Holtec Asia.
India has set a target of achieving 100 GW of nuclear power by 2047 from 8.8 GW now, with a focus on small modular reactors for industrial decarbonisation as part of the country’s net-zero target.