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The significant production base constituent of energy consumed and the value added is the positive bestowing factor in GDP, nor the total consumption, which involves an element of transportation, industrial and household consumption. Considered as the most vital force of any countrys economic development, energy plays a crucial role in the industrial production. The deficit in electrical power has seriously impacted the economic growth of a nation to an uttermost level. As compared to industrialized countries, the usage of electrical power and energy differs in developing countries. In fact, developing countries has a greater appetency for electrical power consumption. In last 2 decades, the consumption rate has been raised at the rate of 8% annually, with a wholesome demand raise of approx. 200%. The bonding between national economical development and power consumption has an outstanding importance. The power consumption statistics and data are life sustaining indicants for estimating the economic growth. Such evaluations are substantial in encouraging sustainable economic development, articulating long term and medium policies and planning strategies to attain national accusatives. Although, power utilization and total consumption doesnt lend much participation in economic development, but energy consumption plays a vital role. Since 1970s, the total energy consumption model that includes residential and commercial use of energy, there is a positive bond between economic growth and energy consumption. This research and study valuate and depicts the economic growth rate in several industrialized countries like Canada, US, UK, Japan and France. Latterly, other prevalent methodologies like ECM (Error Correction Model) and SGC (Standard Granger Causality) have been employed to determine the relationship between GDP and energy consumption. The EMC methodology has been practiced to canvass the relationship between economic growth and energy in countries like India, Philippine, Thailand and Indonesia. It has been terminated that income, energy consumption and price are commonly causative for Thailand but have a two way impact on Philippine.Moreover, the conclusion stated that the electricity usage scientific valuation of economic impact can be ascertained only by the production base analysis. The raise in electrical consumption heightens the GDP and shortfall of electricity encumbers it. In the long term means, a positive means is necessary in GDP growth and energy consumption.
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