Estimation of Impacts of Oil Price Shocks on India’s GDP Growth

The purpose of the paper is to examine the long run relationship between India’s GDP and fluctuations in oil prices. The period of the study is 1962-2012. After investigating the stationarity of the variables through Dickey-Fuller test, VAR model had been employed to study the relationship between the two. The results reveal that a long run functional relationship exists between the crude oil prices and GDP in India.