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The energy headwind

The surge in energy prices is a concern for growth; even if temporary, a reminder of India's strategic dependence on imported energy

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Illustration: Binay Sinha

Neelkanth Mishra
Not just humans, but economies also need energy to grow: Productivity growth is strongly correlated with an increase in the use of dense forms of energy. For example, a car that burns straw to propel itself would be faster than walking, but it would be far slower than a vehicle running on dense forms like petrol or electricity. Mud bricks become sturdier when baked, which needs energy; and construction quality improves further with the use of energy-guzzling material like cement and steel. Improvements in energy efficiency have meant that India’s energy demand has grown around 2.5 per cent slower than
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