Abstract: Energy sector is one of the basic infrastructural sectors. Depleting resources and growing pollution of environment due to energy use has necessitated optimum use of its resources. In a growing economy like India, the need and demand for Energy sectoral growth is imperative. As the economy is showing growth prospects, whether this growth helps in corresponding sectoral improvement in the energy sector is the main focus of this paper. The objective of this study is to find the causal relationship (if it exists) between GDP growth and energy production / consumption. This study uses the formal tests of causality developed by C. J. Granger, taking secondary data of energy production, consumption and GDP growth of India from 1990 to 2014. The results of granger casualty test show that there exists a feed – back causality between energy production / consumption and GDP growth.
Keywords: Economic growth, Energy Production / Consumption, GDP, Stationarity, Granger causality.
Title: A Study of the Causal Relationship between Energy and Economic Growth in India
Author: Dr. Aleykutty Robert
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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