Abstract :
Energy is said to be the prime factor for driving the economy towards the path of economic growth.
Electricity among all the forms of energy plays a vital role in the process of development as to attain growth. Deficit
in the supply of power is no doubt having a direct influence on the growth of the economy as it supports all the
sectors of the economy. Inspite of increasing the installed capacity manifold i.e from 42584.72 MW in 1985 to
250000 MW in 2014-15 (Arslan & Karasan, 2013), the demand for power could not be met out fully and the power
deficit remains to be more than 5 per cent. Ministry of power have been allocating huge funds to strengthen power
sector but the problem of power deficit persists yet. Present article gives an overview of Indian power sector since
1996-97 to 2014-15. An attempt has been made to highlight the current challenges of Indian Power sector and some
policy suggestions are discussed along.
Keyword :
Energy, Economic Growth, Economic Development, Power Deficit.