India’s Electricity Demand falls to a 12-year low according to Central Electricity Authority Data

India’s Electricity Demand falls to a 12-year low according to Central Electricity Authority Data

Consumption of electricity in India fell 13.2% in October from a year ago, posting its steepest monthly decline in over 12 years.

Key Facts

• The country's economy needs electricity to expand, but the reduction in demand for electricity will affect India's industrial activities.
• The Narendra Modi government has set a target of making India's economy by $ 5 trillion by 2024.
• Due to reduced consumer demand and government spending slowed, the GDP rate in the June quarter has been the weakest in the last 6 years and economists are seeing a decrease in demand for electricity as a deepening crisis in the economy.
• Except for 4 small states in the north and east of the country, electricity demand has decreased in all places.
• Industrial production in September was the lowest in the last 14 years, at 5.2%, which increased the government's concern.
• The fourth consecutive quarter of decline in GDP growth was recorded. While the growth rate was 8 percent in the first quarter of the financial year 2018-19, this year it was reduced to 5 percent in the same quarter.