The correct option is 2 and 3 only.
Explanation
Energy is a critical input for economic development. It serves as the lifeline of production processes in agriculture and industry. Consequently, there is a strong linkage between the level of economic growth and the demand for energy.
Statement-wise Analysis:
- Statement 1 is Incorrect: There is a strong positive correlation between economic growth and energy consumption. As an economy grows, production activities in agriculture, manufacturing, and services expand, leading to higher energy requirements. Developed nations with higher per capita income invariably demonstrate higher per capita energy consumption compared to developing nations.
- Statement 2 is Correct: In India, the demand for electricity has consistently increased due to the expansion of the industrial and agricultural sectors. The industrial sector requires power for machinery and production, while the agricultural sector relies heavily on electricity for irrigation (e.g., tube wells) and mechanized farming operations.
- Statement 3 is Correct: According to standard economic projections, to sustain a Gross Domestic Product (GDP) growth rate of around 8 %, the power supply needs to grow at a higher rate, approximately 12 % annually. This reflects the high energy elasticity of growth in developing economies where infrastructure and industrial bases are expanding.
Key Takeaway:
Economic growth and energy consumption are positively correlated. In developing economies like India, the growth rate of power supply must typically exceed the GDP growth rate to sustain development and meet rising demand.