The energy sector holds the key in accelerating the economic growth of India. Thechallenge is especially significant given the Honorable Prime Minister’s cherished goalof reaching 8% growth rates from the current threshold of around 5 to 6%. However, thedevelopment of the Indian energy sector has been constrained by capital, technology,environment and security issues arising out of internal and external consequences.Five different ministries have structurally handled the Indian energy sector and power is a concurrent subject of both the central government and the states. Althoughreforms in the energy sector are underway, the pace of reform is different in the subsectors viz, power, coal, oil, gas and renewables. The power sector needs special attentionto foster development aspirations. Despite significant growth in terms of technologicalsophistication and capacity addition, the power sector suffers from financial weaknessand supply constraints. Thus, emphasis should be put on a scheduled process to turnaround the sector from “bankruptcy to bankability”.Indo-U.S. cooperation in the field of energy has been crystallizing over the yearsin government, academia and industry. Some collaboration in the coal, gas and electricitysectors now exist and a number of American enterprises are operating in India but themagnitude is small relative to the total potential that can be exploited.Bringing the availability of energy up to the global average will require hugeadditions to the energy infrastructure in India. To attract foreign investment in the energysector, the Indian Government has provided attractive packages and policy incentives.Immense Indo-U.S. energy cooperation possibilities exist in the area of energyefficiency, nuclear energy, the application of biotechnology in biomass gasification,geophysical exploration, renewables, and other clean energy technologies. The UnitedStates can also play a role in regional energy cooperation and ensuring energy security by promoting greater cooperation and integration of regional energy markets in electricityand natural gas, as well as the unhindered cross-border trading of cleaner fuels andenergy resources among South Asian countries.It would also be possible for Indian organizations to carry out research anddevelopment programs in collaboration with U.S. research entities on emergingtechnologies such as integrated gasification humid air turbines, integrated gasificationmolten carbonate fuel cells, development of hot gas cleanup systems for IntegratedGasification Combined Cycle (IGCC), high temperature air pre-heater, new material for ultra-supercritical boilers, cleaner vehicles, development of super-conducting materials,hydrogen energy and development of local scale clean technologies. With regards toclean coal technologies over the next decade in the United States, it may be difficult todeploy the advanced technologies that emerge from research programs, as most of thenew power plants will be based on non-coal sources. There are excellent opportunities inIndia to examine the feasibility of these technologies, which will be a win-win situationfor India and the United States.