Electricity is the backbone of modern economic activity enabling industrial production, digital infrastructure, transportation and essential public services. Growth in electricity consumption will be a key driver in attaining the vision of Viksit Bharat and positioning India as a global power. Over period of past four years, the industrial consumption has increased from 320 BU (FY 21) to about 418 BU (FY 25), registering a CAGR of around 7 % over the period.
Government initiatives such as Revamped Distribution Sector Scheme (RDSS) have played an important role by strengthening distribution infrastructure and enhancing supply reliability, thereby helping in meeting rising industrial demand and supporting sustained growth in industrial electricity consumption.
Industrial consumption growth showed a CAGR of 5% (From 380 BU in FY 23 to 418 BU in FY 25). On the other hand, the Commercial consumers showed a CAGR of 10% in the same period (116BU in FY23 to 140BU in FY25). Indicating sustained demand from the services and manufacturing sector. Captive electricity consumption serves as a key indicator of the growing self-reliance of industrial consumers in meeting their energy needs. In FY25, commercial and industrial users consumed 196 billion units (BU) of captive power, up from 176 BU in FY23. This reflects a strong 6% CAGR, underscoring the sustained and rising demand for electricity within these segments. Domestic consumption growth accelerated from 4.8% in FY24 (increasing from 3,52,742 MUs to 3,69,853 MUs) to 9.8% in FY25 (rising from 3,69,853 MUs to 4,06,136 MUs). This sharp rise is driven by urbanization, increased household electrification and higher appliance penetration. States like UP, Haryana, Rajasthan, Punjab, WB, Bihar and Delhi contributed significantly to this growth, highlighting improved living standards and reliable power supply.