India’s electricity demand declined for the third straight month, another indication of an economic slowdown that seems to be deepening. Electricity demand from distribution utilities declined 13.2% in October from a year earlier, data from the Central Electricity Authority showed. The slump began in August when the power requirement dropped for the first time in more than two years.
Slowing requirement mirrors a widespread slump in demand for consumers goods to cars and houses. Industrialized provinces of Maharashtra and Tamil Nadu – both automobile hubs of the country – and Gujarat, a center of textiles and chemicals manufacturing, have also reported a sharp decline in demand.
“The slowdown in industrial activity is responsible for this sharp contraction,” said Debasish Mishra, a partner at Deloitte Touche Tohmatsu in Mumbai.
