<p> India‘s sustainable and sustained economic growth is placing enormous demand on its energy resources. Energy demand in all the three sectors viz. Primary, secondary and tertiary has been increasing tremendously in last six decades. Alongside the economy is also developing at a good pace, at least after the reforms. At this juncture, it is utmost important for the policy makers, especially economists and önancial analysts to understand whether economic development causes more energy consumption or it is more energy consumption that brings speedy economic development. This paper is an attempt to study the causal relationship between the two aforesaid key variables using econometric techniques.</p>