Q.How are the rates of consumption of energy and economic growth connected?

Energy is a core part of a country's economic infrastructure, because nearly every productive activity — running industry, irrigating farms, powering transport and lighting homes — needs it. For this reason the rate at which an economy consumes energy and the rate at which it grows are tightly linked, each pulling the other along. …

The rates of energy consumption and economic growth are closely interlinked, in a two-way relationship:

1. Growth raises energy demand. As an economy grows, its industry, agriculture, transport and households all use more energy. With the rapid rate of economic growth in India, there has been a corresponding increase in the use of energy.
2. Energy is needed to sustain growth. Adequate and reliable energy — especially power — is essential for continued economic development. If energy supply falls short, it acts as a constraint on growth. …