Economy, Energy

Energy is the keystone of India’s agricultural and industrial development. India’s energy is heavily dependent upon coal. In 1995 coal provided nearly 65 percent of India’s primary energy needs. The next most important energy source was petroleum (18.6 percent), followed by hydroelectricity (8.9 percent) and natural gas (8.2 percent). Nuclear power contributes only 1 percent of the country’s primary energy needs. Thermal plants, principally burning coal, produce 79 percent of India’s electricity. Hydroelectric plants generate 18 percent, while nuclear power supplies the remainder. In the mid-1990s India imported slightly more than half its energy needs, particularly crude oil and petroleum products. In order to meet its high energy demands, the Indian government planned in the mid-1990s to more than double the number of oil refineries and nearly double the number of nuclear reactors. It also sought to increase renewable, alternative energy sources such as wind and solar energy.