Chennai/New Delhi, Jan 14: India's annual electricity demand in 2019 grew at its slowest pace in six years with December marking a fifth straight month of decline, government data showed, amid a broader economic slowdown that led to a drop in sales of everything from cars to cookies and also to factories cutting jobs.
Electricity demand is seen as an important indicator of industrial output in the country and a sustained decline could mean a further slowdown in the economy.
India's power demand grew at 1.1% in 2019, data from the Central Electricity Authority showed, the slowest pace of growth since a 1% uptick seen in 2013. The power demand growth slowdown in 2013 was preceded by three strong years of consumption growth of 8% or more.
In December, the country's power demand fell 0.5% from the year-earlier period, representing the fifth straight month of decline, compared with a 4.3% fall in November.
But in India's western states of Maharashtra and Gujarat, two of India's most industrialised provinces, monthly demand increased.
In October, power demand had fallen 13.2% from a year earlier, its steepest monthly decline in more than 12 years, as a slowdown in Asia's third-largest economy deepened.
Industry accounts for more than two-fifths of India's annual electricity consumption, while homes account for nearly a fourth and agriculture more than a sixth.
The slower demand growth is a blow for many debt-laden power producers, who are facing financial stress and are owed over $11 billion by state-run distribution companies.
India's overall economic growth slowed to 4.5% in the July-September quarter, government data released in November showed, the weakest pace since 2013 as consumer demand and private investment fell.
The government has estimated growth in the current financial year that runs through to March will be the slowest since the 2008 global crisis.
"This reflects overall economic slowdown, because if you look at other high frequency data like diesel consumption, everywhere you are seeing contraction," Rupa Rege Nitsure, chief economist at L&T Financial Holdings.
But India's central bank will not have much scope to cut rates to stimulate the economy because inflation has been rising sharply and reached 7.35% in December compared with 1.97% in January last year.
Economists say India's growth will continue to hover around 4.5% levels in the Oct-Dec quarter.
"In the Oct-Dec quarter as well growth (GDP) will be around the same level as July-September. My estimate for the full year is around 4.7% growth," Nitsure said.
Comments
Dalits need to join hands and fight the injustice done by the so called elite criminals. When will U guys stop living in FEAR of this upper caste.. Everybody is equal in the eyes of GOD and no human is superior in the eyes of GOD and fear only GOD not human who says they are superior. Pejawar will never help in this matter... U guys are being deceived by the so called superior.
I feel proud that Prophet Muhammad pbuh taught us a beautiful teachings which says:
All mankind is from ADAM & EVE, An arab has no superiority over an non Arab NOR a non arab has any superiority over an Arab, Also A white has no superiority over black NOR a black has any superiority over white EXCEPT by PIETY and GOOD ACTION.
What it means is also A DALIT is as equal as any human being. Just like a MUSLIMs or any other people in the EARTH> When we follow God's religion. FEAR NOT. Fight for the oppression done by this Foxes who deceive people and keep the society in FEAR.
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