Analysts forecast slower growth for the power sector in the second and third quarters due to concerns of recession. Comment.
It would be worthwhile to note that the growth in power demand hasn’t exactly followed the economy’s growth trajectory as per the data from the last 25 years. Despite the projection on slight deceleration in growth, the gap between India’s per capita power consumption (1208kWh) and that of the global average implies that demand growth is poised to accelerate in the medium to long term. In fact, FY23 is expected to be the second consecutive year in which power demand is likely to grow at over 6%. The current fiscal will also be the second year of power demand growing above pre-pandemic levels and the long-period average of 5%. Domestic manufacturing, diversifying end use of electricity, and access improvements with last mile connectivity will further pull up demand in the medium to long term.