Adani's Carmichael coal mine could help triple Australia's thermal coal exports to India, a new report has found.
Australian coal is currently a less attractive option for India due to its high price and energy content, making it unsuitable for the region.
However, the federal government's Office of the Chief Economist released a report on Friday suggesting Indian-owned coal mines could offer a solution to this problem.
Australia accounts for just four per cent of India's coal imports, overshadowed by Indonesia (62 per cent), South Africa (20) and the US (eight).
But Indonesia and South Africa may not meet all of India's thermal coal import needs.
"India has also made changes to plant efficiency and coal quality standards, which should be more favourable for Australian suppliers of high-energy, low-ash coal," the report says.
"Indian investment has the potential to lift thermal coal exports by vertically integrating coal mines overseas with power plants in India, thereby reducing market risks."
Although Adani is the most advanced project in the works, two other Indian-owned coal projects are in the pipeline for Queensland's Galilee Basin.
Coal India - a state-owned company and the world's largest coal producer - has also shown interest in Australian coal assets.
The report comes as Resources Minister Matt Canavan prepares to visit India and Singapore next week to build ties with the region in an attempt to encourage investment.
Senator Canavan's first stop is India, where he will focus on coal, LNG and minerals.
"As the world's fastest growing major economy, India's projected growth will keep resources trade high, which makes our economic relationship extremely important," he said.
The minister then hopes to gain insights into Singapore's interest in importing hydrogen, which the federal government has flagged as an emerging industry for Australia.
Chief scientist Alan Finkel is leading the development of a national hydrogen strategy.
Labor supports a hydrogen industry, while the party changed its tune after its May election loss to express clearer support for the Adani project and the role of coal in Australia's energy mix.
Australian Associated Press