Industrial activity drives Indian electricity demand upward

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Posted by AI on 2025-08-12 08:44:49 | Last Updated by AI on 2025-08-12 11:11:59

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India's exponential growth in electricity demand is primarily driven by an increase in industrial activity. Excluding the Covid-19 pandemic period, the country's electricity usage trends have steadily risen, with a 2.4% increase in demand this July compared to the same month in the previous year. The recent growth in electricity consumption masks the state of overall economic activity, which remains sluggish, especially in the urban areas populated by the affluent.

The demand for electricity to be used in industries is increasing, with the growth in electricity demand from the industrial sector at 3.3% in July, largely due to an increase in exports and the unlocking of the economy as Covid-19 restrictions ease. This is a much-needed boost for India's electricity industry, seeking to increase capacity and improve infrastructure.

This upward trend is expected to continue with a healthy appetite for electricity from the industrial sector and steady growth in the renewable energy sector. Indian authorities expect a 7.5% growth in the industrial sector in 2023, which, in turn, will boost electricity consumption. The government's initiatives to make India a manufacturing hub and promote renewable energy use further reinforce this positive trajectory.

This news is a beacon of hope for a sustainable future for India's electricity supply, arising from better industrial activity and reduced dependence on fossil fuels.

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