Despite progresses achieved in several directions, Indian electricity sector continues to suffer from multiple anomalies that might endanger the energy security of the country. It is pertinent at this juncture to ask the question whether the sector is moving on a sustainable growth trajectory. Using a sustainable development framework, the present study evaluates how sustainable the Indian electricity sector is. It employs 11 indicators representing three dimensions of sustainable development i.e. economic, environmental and social and analyses 12 Indian states over a decade period. The findings of study suggest that the sector is moving towards sustainability though deviations exist in the performance of individual states and individual dimensions. The economic dimension shows a non-linear trend with multiple ups and downs. The environmental dimension indicates first a falling trend up to 2005-06 and rising sharply thereafter. The social dimension reveals a declining trend during the initial periods of the study and picking up in the last few years. Feed-in tariff policy of the Indian government is found to be successful in improving the electricity accessibility and diversifying the electricity supply and raising share of renewable energy which are in line with higher energy security goals.