ELECTRICITY CONSUMPTION AND ECONOMIC GROWTH: CAUSAL RELATIONSHIP IN INDIA

Energy is a vital component of human development and is important for developing nations like India. In order to maintain the sustainability of the environment and guarantee the energy supply, global economic growth strategies are being reorganized with energy security and environmental sustainability as key priorities. An analysis of the relationship between India's economic growth and power consumption for the years 1960–2006 has been carried out using the Granger Engel causality model. The test's findings suggest that using electricity encourages economic growth. Over the past 20 years, there have been major institutional changes in the Indian power sector. With the support of ongoing governmental initiatives, the Indian electrical industry is poised for a significant transformation. Consequently, the study makes the case for additional power sector reforms and demonstrates how energy may act as a catalyst to accomplish a variety of social and economic goals.