Impact of Oil Prices on Economic Growth of India

The objective of this paper is to assess the impact of oil prices, on the growth of an economy, taking a specific case of oil importing nations, and to determine the differences about the impact of oil prices of an economy of an oil producing nation. The paper aims to provide a literature review of the impact of change in oil prices and determine the parameters or causes of changes in price, and determine their effect on the economy of the state. The analysis starts by reviewing certain case studies of impact of oil price changes in recent years, and proceeds to a cause effect analysis of certain parameters of the impact of oil. Later, the paper also will analyze the impacts of oil price changes, on various economic parameters like GDP, employment structure, inflation, exchange rates etc.