Advance Metering Technology Ltd Management Discussions

In 2024, the world economy grew 3.3% maintaining the pace of growth amidst ongoing geopolitical tensions. The growth was not uniform across countries with robust momentum in the US in contrast to slower growth witnessed in the Euro region. India has continued to showcase remarkable economic resilience despite a highly volatile and challenging global environment. In the face of ongoing global trade tensions, geopolitical uncertainties, and policy unpredictability, India has maintained its position as one of the worlds fastest-growing major economies. The countrys GDP (provisional) growth for the fiscal year 2025 stands at a robust 6.5%, underpinned by strong domestic demand, sustained investments in public infrastructure, and ongoing strength in the financial sector.

Despite a fragile global economic backdrop characterized by uncertainties in trade and financial markets, Indias combination of structural strengths, sound monetary policy, and fiscal prudence positions it as a vital engine of global growth. Looking ahead, the RBI has projected real GDP growth at 6.5% for FY 2026, maintaining the same rate witnessed for FY 2025, following a strong expansion of 9.2% in the preceding year. Headline inflation eased between January and April 2025, largely due to a significant drop in food prices. Additionally, the decrease in crude oil prices has further reinforced expectations of continued disinflation. As a result, the RBI revised the inflation forecast for FY 2026 downward to 3.7%, from the earlier estimate of 4.0%.

India has emerged as a pivotal force in the global energy transition landscape, balancing its development needs with climate commitments. The country added 23.8 GW of solar and 4.2 GW of wind capacity in FY 2025 alone, driven by robust policy support and domestic manufacturing of equipment.

Electricity is expected to continue to remain a key input in Indias GDP growth and Renewable Energy would have a dominant role to play in overall energy portfolio of the country. The substantially higher targets for RE capacity will ensure greater energy security, improved energy access and enhanced employment opportunities. With the accomplishment of ambitious targets set by the Government of India, majority of the energy requirement is likely to be met through clean sources of energy.

The Prime Minister has approved the Reforms-based and Results-linked, Revamped Distribution Sector (RDSS) scheme to strengthen supply infrastructure in the power sector. The central aim of the smart meter national programme scheme upgrade Indias 250 million conventional meters with smart replacements and to address the massive Aggregate Technical & Commercial (AT&C) losses suffered by power distribution companies (DISCOMs) as a result of power theft, meter tampering, inaccurate billing and the length of time between a meter reading and a payment. Its estimated that DISCOMs lose more than INR 1,00,000 Crs a year because of these issues.

Government is currently in the process of Implementation of Smart Metering Program to significantly improve the billing and collection efficiencies of Distribution Companies (DISCOMs). Smart Meters will be the foundation for smart grid programme which will be crucial to meet challenges of the newly evolving energy mix and the target of providing uninterrupted 24x7 power supply to every Indian.

Power Distribution Sector worldwide is rapidly adopting the Smart Metering Technology. This technology is futuristic and helps Distribution Companies in effective distribution operations as well as help utilities in managing dynamic and disruptive changes happening in the grids due to solar energy infusion, In India, itself, there are around 360 million consumers and smart metering adoption is in initial stage.

India is expected to be an emerging market for smart phones. Under the Smart Meter National Programme, the Government of India has aimed to replace 250 million smart meters. This is a major business opportunity. However, interoperability issues with traditional metering, billing and collection systems need to be sorted out.

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