Coal Bed Methane (CBM) represents a critical transitional energy resource for India, offering a pathway to reduce reliance on coal, enhance energy security, and mitigate methane emissions-a potent greenhouse gas. This study conducts a comprehensive comparative analysis of India’s CBM advancements against global leaders (China, the U.S., and Australia), evaluating technological innovation, policy frameworks, infrastructure readiness and environmental sustainability. With 92 trillion cubic feet (TCF) of estimated reserves concentrated in Gondwana basins, India’s CBM potential remains underexploited, producing only 2.8 million metric standard cubic meters per day (MMSCMD) as of 2024. In contrast, the U.S. and Australia produce 48.2 MMSCMD and 30.1 MMSCMD, respectively, driven by mature technologies, streamlined policies, and robust infrastructure. Using a mixed-methods approach, this study integrates quantitative analysis of production data (2010–2024) & qualitative policy reviews to identify systemic gaps. Key findings reveal that India lags in horizontal drilling efficiency (30% lower recovery than the U.S.), digital monitoring adoption (IoT usage in 15% of wells vs. 85% in Australia), and methane leakage mitigation (7.9% of national emissions, double the global average). Regulatory fragmentation, particularly overlapping coal mining and CBM licenses, delays projects by 18–24 months, while inadequate pipeline connectivity restricts commercialization. The study highlights replicable strategies from global benchmarks like China’s AI-driven drilling optimizes extraction in deep seams (>1,500 m), achieving 12 MMSCMD production. Australia’s CBM-LNG integration at Gladstone Terminal generates $45 billion annually, demonstrating export scalability. U.S. tax incentives under Sect. 45 boost private investment, revitalizing aging basins. This study recommends adopting advanced technologies like AI-driven reservoir modelling and modular LNG plants to boost recovery and export capacity, although regulatory harmonization between coal mining and CBM extraction has reduced project delays by 30% under India’s 2024 Unified Licensing Policy. Additionally, it calls for expanding the National Gas Grid to connect remote basins and prioritizing small-scale LNG facilities. Projections suggest these measures could elevate India’s CBM production to 8.5 MMSCMD by 2030, fulfilling 15% of gas demand and reducing methane emissions by 30%. The study underscores the urgency of aligning CBM development with India’s net-zero targets, advocating for public–private partnerships and international collaboration in carbon capture and storage (CCUS) technologies.