Oil Price Shocks in India: Industrial Growth Plummets with Soaring Prices
Oil price shocks have a big impact on India's economy. When oil prices go up, industrial production goes down. The study looked at data from 1975 to 2004 and found that a 100% increase in oil prices leads to a 1% decrease in industrial growth. Oil prices also interact with monetary shocks to affect industrial production the most. The study shows that oil prices have a significant influence on the economy, especially on industrial growth in India.