New Delhi, May 28 -- Power demand is expected to grow 5-5.5% in the current fiscal year, according to estimates by Icra Ltd. Although this is higher than the 4.2% growth last fiscal (FY25), it would be slower than the 7-9% growth seen in FY 2022-24.

The projected growth is lower than expected GDP growth for this fiscal year at 6.5%. Analysts suggest that had the country not seen an early onset of the monsoon, the power demand would have been much closer to the GDP growth rate.

"Icra projects the full-year demand growth for FY2026 at 5.0-5.5%, lower than its expectation for the GDP growth for this fiscal (6.5%). This is owing to the early onset of the monsoon and expectations of an above average monsoon, which dampens the demand for cool...