A Study of Downturn Trends of Crude Oil Price – An Economic Advantage for Indian Government and Consumers

Author:Pankaj Dixita, Amit Tyagib*

Abstract:
In this paper, we focus on the positive impact of the fall of crude oil prices on the Indian economy. In this fall trends of oil prices at international level, prices drop throughout an economy, relative purchasing power theoretically increases. We all are aware that Crude oil prices play a significant role in the economy of a country. India’s growth hovers around the import of oil as imports 70% of its crude requirements. Any negative change in the crude oil prices has an immediate positive impact on the increment in the GDP and IIP. For instance, a one-dollar fall in the price of oil saves the country about 40 billion rupees. This, in turn has a three-fold effect on the economy. From the limited perspective of India’s consumer economy, lower global oil prices undoubtedly augur well. Lower pump prices reduce pressure on the consumer who can spend the savings elsewhere, spurring the demand side of the economy.

Keywords:Keywords: PSU, GDP, IIP, OPEC, CAD.

DOI:

International Journal of Trade & Commerce (Vol: 4 Issue:1)