India’s electricity demand rose 3.52% in January, government data showed on Tuesday, marking the first increase after five straight months of decline.
January demand for electricity rose to 105.29 billion units from 101.71 billion units a year earlier, data from the Central Electricity Authority showed.
Electricity demand is seen by economists as an important indicator of industrial output and an acceleration could point to a recovery from an economic slowdown, indicated by the country’s GDP growth - which plummeted to the lowest levels in more than six years during the September quarter.
However, the rise is from a low base, as electricity demand grew at the slowest pace in January 2019 in nearly two years, CEA data showed.
India’s annual electricity demand in 2019 grew at its slowest pace in six years, amid a broader economic slowdown that led to a drop in sales of everything from cars to food products and also has led to factories cutting jobs.
Annual consumption of electricity by industry accounts for more than two-fifths of India’s annual electricity consumption, according to government data, with residences accounting for nearly a quarter and commercial establishments for another 8.5%.