crude oil price on the economic growth of India
Abstract:
This paper analyzes empirically the effect of crude oil price on the economic growth of India.
Submitted By:
1. D13011 Joseph J Manavalan
2. D13021 Sayed Sameem
3. D13029 Surat Dayal
4. D13 Biju EXEC-PGP, DUBAI(2013-2016)
Table of Contents:
1. Introduction------------------------------------------------------------------ 3
2. Oil crisis and Indian Economy-------------------------------------------- 4
a. Balance of Payment
3. CAD and Import Bill-------------------------------------------------------- 5
a. Inflation
4. Solution----------------------------------------------------------------------- 9
i. Increased hydrocarbon production ii. Unconventional resources iii. Foreign acquisitions iv. Deregulation of Oil
v. Solar Power
References------------------------------------------------------------------------- 14
Appendix-------------------------------------------------------------------------- - 15
Introduction
India’s growth engine has been predominantly driven by oil (over two-thirds of which is imported). This situation may not change much over the next few decades.
The government is considering exploration of shale gas but that will take a long time. Thus the oil import bill will remain a function of both quantity imported and the international price of crude.
Despite price increase and volatility, oil imports are a necessity. Further, shortfall in domestic coal production has resulted in increased dependence on imports. Hence reducing CAD through lowering oil and coal imports is not a feasible option.
India is emerging as an industrialized country and the energy requirements are largely fulfilled through crude oil imports. Estimates suggest that energy demand of the region will increase three times in the next fifteen to twenty years (SAARC 2011).
Economists through empirical analysis of different
This paper analyzes empirically the effect of crude oil price on the economic growth of India.
Submitted By:
1. D13011 Joseph J Manavalan
2. D13021 Sayed Sameem
3. D13029 Surat Dayal
4. D13 Biju EXEC-PGP, DUBAI(2013-2016)
Table of Contents:
1. Introduction------------------------------------------------------------------ 3
2. Oil crisis and Indian Economy-------------------------------------------- 4
a. Balance of Payment
3. CAD and Import Bill-------------------------------------------------------- 5
a. Inflation
4. Solution----------------------------------------------------------------------- 9
i. Increased hydrocarbon production ii. Unconventional resources iii. Foreign acquisitions iv. Deregulation of Oil
v. Solar Power
References------------------------------------------------------------------------- 14
Appendix-------------------------------------------------------------------------- - 15
Introduction
India’s growth engine has been predominantly driven by oil (over two-thirds of which is imported). This situation may not change much over the next few decades.
The government is considering exploration of shale gas but that will take a long time. Thus the oil import bill will remain a function of both quantity imported and the international price of crude.
Despite price increase and volatility, oil imports are a necessity. Further, shortfall in domestic coal production has resulted in increased dependence on imports. Hence reducing CAD through lowering oil and coal imports is not a feasible option.
India is emerging as an industrialized country and the energy requirements are largely fulfilled through crude oil imports. Estimates suggest that energy demand of the region will increase three times in the next fifteen to twenty years (SAARC 2011).
Economists through empirical analysis of different