There is a bidirectional relationship between consumption of energy and economic growth. Increase in rates of consumption of energy leads to economic growth and on the other hand, economic growth leads to increase in rates of consumption of energy. But there is a catch in the above statement, the former part of the statement is more relevant in the scenario of developing economies whereas latter part is a characteristic of developed economy. Energy sector play crucial role in economic development as energy is required by all sector to flourish whether it be transportation, agriculture, business, etc. Rate of consumption of energy by different sectors defines in which phase of development the economy is now. 
Economies with high consumption of energy in agricultural and related sector are considered under-developed and developing, whereas economies with high rate of consumption by non-agricultural sectors are considered developed.