India's less industrialized states lead electricity demand recovery

Reuters

April 05, 2021 / 17:34 IST

Representative image

India’s less industrialized states have led a recovery in electricity demand that began in September, a Reuters analysis of government data showed.
Power use in less industrialized states such as Bihar and Chhattisgarh in the east, and Uttar Pradesh and Punjab in the north, grew at over 10% each compared with the previous year, both for the quarter and the six months ending on March 31, the data showed.

Graphic: India's electricity use growth in FY 2021 vs FY 2020
All these states - which have high agricultural and residential power consumption - consumed more electricity than in the previous year, though India’s annual power demand fell for the first time in at least 35 years in 2020/21.

India's annual electricity usage falls first time in 35 years

The imposition of coronavirus lockdowns resulted in a fall in electricity consumption for six straight months through August, but consumption has since risen for seven consecutive months, with usage in March rising at the fastest pace in 11 years.

Graphic: India's annual electricity demand growth
Industries and offices account for half the country’s annual electricity consumption. Senior government leaders including Prime Minister Narendra Modi have cited the recovery in demand for power as a sign that the economy is also beginning to recover from its worst slump in decades.

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