Energy Use as Determinant of Economic Development in India

Abstract: There are several factors that determine economic development. In the modern times, energy use is a crucial factor that has paramount importance. Energy is an important input in increasing the production and productivity of all the sectors in the economy. This paper tries to find out whether energy use is a determinant of economic development for India for the period 1973 - 2014. Using VAR Granger Causality model, it is found that there is a uni – directional causality between energy use and GDP, that is energy use is a causal factor for economic development. Keywords: Energy Use, GDP per capita, VAR Granger Causality, Economic Development