According to Fitch Solutions, India’s power consumption and generation are likely to contract by 6.6 per cent and 6.8 per cent respectively, and for capacity to grow by only 2.7 per cent this year.
Fitch Solutions said its country risk team has revised forecast for India’s FY21 real GDP to contract by 8.6 percent from a 4.5 percent contraction previously as continued state-level COVID-19 movement controls amid a still rife outbreak across many major states have continued to weigh on the economy.
“Our initial forecasts accounted for a slight recovery in the second half of 2020 from COVID-19 pandemic but we no longer think this will take place, given near to medium-term pressures on the power sector from multiple fronts,” it said.
For now they have made a downward revisions to the growth forecasts for India’s power and renewables sector due to ongoing impacts from the Covid-19 pandemic, China-India tensions and policy uncertainty in the solar sector.
However, over the longer term, they expect India to add a net capacity of 262 gigawatts between 2019-end and 2029.
This is a Syndicate News-Feed; edited by Clean-Future Team