Abstract

The paper explores the nexus between transport infrastructure (road and rail), energy consumption (oil and electricity) and economic growth in India over the period 1970-2007. Using cointegration and Granger causality test, the paper finds a unidirectional causality from transport infrastructure to economic growth, a unidirectional causality from economic growth to energy consumption and a unidirectional causality from transport infrastructure to energy consumption. The paper at the end suggests that energy and transportation policies should recognize the transport- energy consumption- growth nexus in order to maintain sustainable economic growth in the country.

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