India's electric power industry is expanding robustly, as the demand for power, spurred by the country's expanding economy, escalates. The per capita consumption of electricity in India is presently very low, around 730 kilowatt-hours (kWh) compared to the global average of 2,490 kWh.
According to a new ARC Advisory Group study, Electric Power Automation and Asset Management Outlook for India, the market for automation and asset management in India will continue to grow significantly in the next five years.
The economic growth of the country is leading to increased consumer spending resulting in the growth of manufacturing industries, both process and discrete. Industries, such as automotive, aluminum, cement, and steel are already showing signs of robust growth in the country. With the country just making an entry into a sustainable economic growth phase, these and other industries are expected to keep expanding for many more years. These trends imply that the demand for electric power will keep increasing.
According to Rajabahadur V. Arcot, vice president and general manager of ARC Advisory Group, "The country needs to augment its existing generation capacity by around 600,000 - 700,000 MW in the next 15 years to satisfy growing demand for electric power." The electric power industry will have to expand at least at the rate at which the economy expands, if not more. The electric power industry, according to him, must also focus on improving and augmenting the existing transmission and distribution assets, which have a direct impact on the industry's commercial viability.
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