The Central Electricity Authority in its latest data has showed that India's annual electricity demand grew at its slowest pace in six years in 2019 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.
Data showed that India's power demand grew at 1.1% in 2019, 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 2019, 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.
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.