Electricity Demand Set to Surge: A Bright Forecast for FY26
The domestic electricity demand in India is projected to grow by 4-4.5% in FY26, following a modest start. Icra anticipates a second-half recovery due to stabilizing weather patterns and steady economic activity. Coal inventories at power plants remain sufficient, indicating improved supply and logistics.
- Country:
- India
India's electricity demand is expected to rise by 4-4.5% in FY26, according to Icra's recent projections. This follows a subdued growth of just 1% in the first half due to weather anomalies and early monsoon.
Ankit Jain of Icra highlights that as weather stabilizes and economic activities continue, electricity demand is expected to recover, reaching healthier levels in the year's second half.
Meanwhile, coal supplies have shown significant improvement. As of October 10, 2025, coal reserves at power plants are sufficient for almost 15 days, significantly better compared to previous years, echoing efficient supply chain management in the sector.
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