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Economic impact of power outage on GDP of India
Abstract and Figures
Power outage in India has become a norm and not exception as in most of developed nations due to large demand of power and yet larger denominator of population. Per capita income that translates prosperity of nation has caught up the same curve as per capita consumption of electricity for any country. Therefore it is established that any alleviation in per capita consumption will affect the per capita income of the individual and GDP of the nation. In this paper we have deciphered linkage between these two trends. Data of top 5 power consuming areas of 7 states are taken as a reference and extrapolation method is used to calculate its effect on national level. We conclude that power outage is directly affecting the GDP of India to approximately 5% and minimizing the profit from Indian industries due to backup arrangements. Keywords-per capita generation, per capita income, GDP, Indian economy.
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