As of today people are much more aware about the happenings in our surrounding and are becoming much more eco-friendly to protect our environment from any further deterioration and thus it becomes a responsibility to all of us to follow the path of treating our mother nature with same affection and care to what we derive from her as to adopt the sustainable development of life to leave some resources to be further utilised by our future generations as well and as the population is rapidly expanding and people’s living has become so sophisticated that some people barely care for the resources thus negligence towards utilisation of natural resources leads to depletion in the quality and quantity of the resources and the theory of conservation flunks to be realised. So, this paper seeks to explore the energy challenges of India, the cause and effect relationship between energy and economic development, and the sustainability of its environment for its millions of poor populace. Energy security and sustainable development are critical issues to ensure India’s economic growth and its human development objectives. In real sense of the Indian context, the issue of sustainability is larger compared to OECD countries as India has to address the basic needs of teeming millions today, before it can start thinking about tomorrow. India should focus on holistic energy policies, diversification of fuel mix, clean technologies, R & D, energy efficiency, creating awareness and strengthening governance for Sustainable Development at the local and national levels.