NETWORKS IN INDIA IS A BIG ISSUE

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NETWORKS IN INDIA IS A BIG ISSUE

Written By s mahe | Mumbai | Updated On:
india networks

 

NEW DELHI: 

India's power demand fell 13.2% in October from a year ago, posting its steepest monthly decline in over 12 years, government data showed, reflecting a deepening growth slowdown in Asia's third-largest economy.

The country needs electricity to fuel its expanding economy but the third decline in power consumption in as many months points to tapering industrial activity in the nation that aims to become a $5 trillion economy by 2024.

The  June quarter GDP grew at its weakest pace in six years as consumer demand and government spending slowed, and economists see the falling electricity demand as a reflection of a further slowdown.

"The slowdown seems to be deep-rooted, especially in the industrial sector. That would certainly increase the anxiety with regard to growth prospects in the current year," said NR Bhanumurthy, a professor at the National Institute of Public Finance and Policy in Delhi.

Consumption in heavily industrialized states such as Maharashtra and Gujarat led to the decline. Last month, power demand in Maharashtra declined by 22.4% and in Gujarat by 18.8%, the data from the Central Electricity Authority (CEA) showed. Barring four small states in the country's north and the east, demand fell across regions, the data showed.

The infrastructure output in September contracted 5.2%, the worst in 14 years, adding to the worries of the government that has been unable to revive demand in the economy despite several steps in the last few months.

The fuel demand growth - also seen by economists as an indicator of economic activity - is on track for the slowest pace in six years.

NEW DELHI: 

India's power demand fell 13.2% in October from a year ago, posting its steepest monthly decline in over 12 years, government data showed, reflecting a deepening growth slowdown in Asia's third-largest economy.

The country needs electricity to fuel its expanding economy but the third decline in power consumption in as many months points to tapering industrial activity in the nation that aims to become a $5 trillion economy by 2024.

The  June quarter GDP grew at its weakest pace in six years as consumer demand and government spending slowed, and economists see the falling electricity demand as a reflection of a further slowdown.

"The slowdown seems to be deep-rooted, especially in the industrial sector. That would certainly increase the anxiety with regard to growth prospects in the current year," said NR Bhanumurthy, a professor at the National Institute of Public Finance and Policy in Delhi.

Consumption in heavily industrialized states such as Maharashtra and Gujarat led to the decline. Last month, power demand in Maharashtra declined by 22.4% and in Gujarat by 18.8%, the data from the Central Electricity Authority (CEA) showed. Barring four small states in the country's north and the east, demand fell across regions, the data showed.

The infrastructure output in September contracted 5.2%, the worst in 14 years, adding to the worries of the government that has been unable to revive demand in the economy despite several steps in the last few months.

The fuel demand growth - also seen by economists as an indicator of economic activity - is on track for the slowest pace in six years.

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