ABSTRACTThe present study investigates the impact of renewable and nonrenewable energy use on economic growth in India within the energy consumption–growth framework over the period 1971–2012 using a multivariate model wherein trade openness and financial development are included as additional variables. Empirical evidence confirms the existence of a long-run equilibrium relationship among the competing variables. The results indicate that nonrenewable energy consumption has a long-run significant positive effect on India’s economic growth. In addition, it is shown that a bidirectional causality exists between nonrenewable energy use and economic growth in both the long run and short run. Based on these findings, it is suggested that a nonrenewable energy conservation policy may retard economic growth in India if initiated without due regard to renewable energy sources.