Impact of changes in global crude oil prices on the Indian economy

Abstract

Oil is a crucial component in nearly every country's economic activities. “As a result, an increase in its price is likely to have a negative impact on the economic expansion of oil-importing nations like India. The purpose of this paper is to investigate how the price of oil affects India's economic growth to see if there is a co-integration relationship between India's economic growth, oil price, capital formation, and inflation. Crude oil always has a lower starting price, but import taxes make it more expensive for the average person. The cost of petroleum or other related items increments as needs be which brings about an expansion in consumption of an everyday person. This paper attempts to explain the significance of reducing crude oil imports to raise a person's standard of living and provides insight into the current state of crude oil imports. In order to avoid a rise in oil prices and its subsequent negative impact on the country's economic growth, the study suggests that the government should refrain from imposing additional taxes.”