Energy consumption of a nation is usually considered as an index of its economic development and well being. India’s
economy which is third largest in the world is growing rapidly. Policies are prepared for country’s modernisation and expansion
of the manufacturing facilities. This modernisation and expansion needs huge energy requirement. However, the relationship
between economic growth and increased energy demand is not always a straightforward linear one. For example, under present
conditions, 6% increase in India's Gross Domestic Product (GDP) would impose an increased demand of 9 % on its energy
sector. India is the fourth largest energy consumer in the worlds after US; China & Russia.