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Power demand dip in industrial states may signal cooling output
Mint Mumbai
|June 05, 2025
Demand for power in India's top six industrialized states flattened in April and cooled in May, pointing to a potential fall in factory production at the start of the new financial year.
Data from the Grid Controller of India showed that total daily demand in May across Gujarat, Maharashtra, Andhra Pradesh, Uttar Pradesh, Tamil Nadu and Karnataka fell 5.7% from a year ago. As of 25 May, cumulative demand in these states stood at 59.58 billion units (BUS). In the same month, the HSBC manufacturing Purchasing Managers' Index hit a three-month low, as new orders and production slowed.
In April, power demand across the same states was flat at over 75 BUS.
While a break-up of industrial, commercial and household power consumption is not available yet, demand in industrialized states is seen as a proxy for overall industrial power consumption. Since industries account for roughly 45% of total power demand, weakness in these states could indicate a broader slowdown in industry.
"The major reason for the reduction in the industrial power demand has been the slowdown in economic activity, particularly in mining and manufacturing sectors, where the industrial output has remained weak in the months of March and April 2025," Mohammad Saif, partner, strategy and transactions at EY India, said.
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