Get used to high energy prices, says Montek

It is important to get used to high energy prices, he said. “It is very difficult to persuade any body to be efficient in using the product if the product is not properly priced… if the real prices of energy is high it is better for the country to pass on that price combining it with some targeted subsidy for those who need it rather than to refuse to pass on that prices and simply subsidies it,” Ahluwalia added.

Though India has diverse energy resources including coal, it would be key to develop an appropriate energy strategy in order to develop rapidly. At present, global crude oil price stands at 143 dollar per barrel.

Speaking on “Challenges of Inclusive Growth,” he said that there is constraint relating to energy. It is not possible to achieve rapid growth in the economy without rapid increase in energy use, he pointed out. “While the GDP is growing at 8.6 per cent or so, our total use of energy is growing at only 6 per cent or so… but is growing,” he said, adding that over time, the per capita requirement of energy in India will expand further.