Page 43 - Index

02-40 CORPORATE OVERVIEW 41-59 STATUTORY REPORTS 60-147 FINANCIAL STATEMENTS Management Discussion and
Analysis (MD&A)
Management Discussion and Analysis (MD&A)
INDIAN ECONOMY OVERVIEW
India’s underlying economic fundamentals are believed to remain strong despite the short-term turbulences caused by the emergence of newer COVID variants, geopolitical crisis, supply-chain disruptions, and rising inflationary pressures. Growth has surpassed the pre-pandemic levels on the back of improved performance in the manufacturing and construction sectors. India’s Gross Domestic Product (GDP) has grown by 8.7% in FY 2021-22 as against a contraction of 6.6% in the previous fiscal. Faced with headwinds from rising inflation, RBI, in its latest estimates, has projected the real GDP growth for FY 2022-23 at 7.2%. The global agencies also peg the Indian economy’s growth in FY 2022-23 between 7.5% and 7.8%.
The results of growth-enhancing policies and schemes such as production-linked incentives, Atmanirbhar Bharat and increased infrastructure spending are expected to start showing going forward, leading to a stronger multiplier effect on jobs and income, higher productivity, and efficiency - all leading to accelerated economic growth.
Backed by several efforts such as National Infrastructure Pipeline (NIP), technology-enabled development, energy transition, and climate change initiatives taken by the government, the Indian economy is poised to grow at the fastest rate amongst the large nations in the world.
Power Sector in India
Electricity is an essential requirement for all facets of life and has been recognised as a basic human need. It is amongst the most critical components of infrastructure and crucial for socio-economic development and welfare of nations. A thriving power infrastructure is imperative for the sustained growth of the Indian economy. It has been recognised as a strategic and critical sector and the power supply system supports the entire economy and day-to-day life of the citizens of India. Despite consistent increase over the years, the country’s per
capita electricity consumption continues to be significantly lower than the world average.
The demand for electricity in the country has, however, been growing rapidly over the past years and the peak demand has grown from 160 GW in FY 2017 to 203 GW in FY 2023. During the first three months of FY 2023, the country has witnessed steep rise in the peak demand which touched a high of 210.79 GW on June 9, 2022.
To meet the growing electricity demand, India has embarked on a focussed energy transition journey and at the COP26 in Glasgow, Hon’ble Prime Minister of India declared India’s commitments to energy transition mainly including achieving the target of Net-Zero emissions by 2070, 500 GW non-fossil fuel energy capacity by 2030 and meeting 50% energy requirement from Renewable Energy (RE) by 2030.
Panchamrits’ unprecedented contribution of India to climate action
India will reach its non-fossil energy capacity to 500 GW by 2030
India will meet 50% of its energy requirements from renewable energy by 2030
India will reduce the total projected carbon emissions by one billion tonnes from now onwards till 2030
By 2030, India will reduce the carbon intensity of its economy by less than 45%
By the year 2070, India will achieve the target of Net-Zero
Source: pib.gov.in
The RE capacity which has witnessed significant growth in the past five years contributing largely to the increase in installed capacity in the country, and is poised for a quantum jump by 2030.
Power Demand (GW) Installed Capacity (GW) Renewable Energy Capacity (GW)
E-Estimated (Source: NIP, CEA)
POWERGRID Infrastructure Investment Trust 41
FY17 160
FY22 203 FY27 (E) 299 FY30 (E) 340
FY17 327
FY22 399 FY27 (E) 568 FY30 (E) 817
FY17 57
FY22 110 FY27 (E) 225 FY30 (E) 420