THE MOST GRADUAL RISE IN POWER CAPACITIES FOR INDIA IN 2024 POST-PANDEMIC HERE IN AFTER

Official data indicates that India's electricity generation grew by 5.8 percent in the current year to 2024, measuring 1,824.13 billion kilowatt-hours. This poses the slowest growth rate following post-COVID days. Its former average power output growth of just 2.3 percent over the latter half of the year as compared to the first half's strong 9.6 percent has become heavily pronounced. Such a trajectory indicates a general greater economy slowdown.

While manufacturing may show signs of weakness, analysts are positive that growth in 2025 recovery would occur at 6-7% in power output rebounding. This recovery is also anticipated to be stimulated by higher levels of activity in the industrial sector and cold residential heat use.

Coal dominated and rules India's energy mix in 2024, where it made up 74.4 percent of electricity production, slightly down in that share compared to previous years. Renewables like solar and wind power achieved a benchmark 12.1% share. It was nearly back to its pre-2023 position, with hydropower recovering more than it had lost in that year. However, growth in solar and wind production has been much slower than expected, particularly given the heavy rains of 2023.

Natural gas-fired power projects are expected to decline by 2025 because of the higher price of gas worldwide.

The declining power generation is also accompanied by various other economic indicators: reduced manufacturing activity and, more particularly, softening consumer demand. India's GDP growth for the fiscal year ending March 2025 is 6.4 percent, which is the slowest in four years. Such trends seem to compel the government to act toward stimulating the economy and demand for energy.