Effect of Rising Oil Prices on Indian Economy - 1981 Words

A rise in global oil prices by $ 10 per barrel would reduce Indias economic growth by 0.2 percentage points and also affect the countrys current account deficit, Goldman Sach said. A VAR (value-at-risk) analysis suggests that a $ 10 increase in oil would reduce GDP growth by 0.2 percentage point, Goldman Sachs said in its latest edition of Asia Economics Analyst. India on Monday voiced serious concern over the rising crude oil prices, which have touched a two-year high, and said it could badly affect global economic growth and even give rise to inflationary pressures. The current oil prices will spur global inflation and retard economic growth. India feels that this is the concern that needs to be addressed on priority, Minister†¦show more content†¦In this background, I found it reassuring to come across opinions from two unrelated quarters questioning the connection. CONFIDENT ASSERTION There is first the confident assertion of the Chairman and Managing Director of Indian Oil Corporation (IOC), Mr R. S. Butola, that the impact of higher crude prices need not always be severe, and can, in fact, be circumvented by means of some ingenious countervailing measures. The IOC seems to have achieved this by carrying out crash modernisation and upgradation of plants and shifting the dominant part of its business plan to petrochemicals. For instance, by using modern processes, IOC has been able to convert many black products into high-value fuel such as LPG and petrol, significantly raising the companys distillate yield from 71.5 per cent in 2004-05 to 75.4 per cent in 2010-11, and thereby extracting more high-value products from every barrel of crude. A recent IMF working paper (No.11/194) â€Å"Oil shocks in a global perspective: Are they really that bad?† is a scholarly exposition downplaying the gloomy prognostications associated with surging oil prices. The importance of the paper is that it almost exclusively focuses on the economies of developing countries. It goes into the relationship between oil prices and macroeconomic fundamentals, including economic output and value and volume of internationalShow MoreRelatedOil Prices And Rise And Fall Of Chinese Economy Essay1125 Words   |  5 PagesFalling crude oil prices and rise and fall of Chinese economy Who’s afraid of falling crude oil prices? Isn’t it something to celebrate from the consumers’ point of view, especially in the Asian region! The answer is perhaps â€Å"no†. Though the debate over the impact of plunge in crude oil price and its implications will continue for long, nothing can be said with fair amount of certainty as long as its link with the slowdown of Chinese economy. A substantial amount of work is being carried out by theRead MoreOil Refinery in India1710 Words   |  7 PagesOil Refinery in India An Industry Overview #8195; Table of Contents INTRODUCTION 2 GLOBAL VIEW ON REFINING 3 INDUSTRY OVERVIEW 4 REGULATORY FRAMEWORK 8 INDUSTRY ANALYSIS 9 FUTURE OUTLOOK 11 REFERENCES 12 THE ONCE RELIABLE CONSTANTS HAVE BECOME GALLOPING VARIABLES -ALVIN TOFFLER India the worlds seventh largest country and the second most populace nation has been a destination of unrealized potential. In the recent past it has seen as stir of economic activity changing the prim face of theRead MoreFood Price Inflation in India4918 Words   |  20 PagesCreation 4.4. Deficit of Government 5. EFFECT OF INFLATION 5.1 Negative effects 5.2 Positive effects 6. TOOLS TO MEASURE INFLATION†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 6.1 National Income Deflator 6.2. Whole sale Price Index (WPI)†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦... 6.3. Consumer Price Index (CPI)†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 7. FOOD PRICE INFLATION†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 7.1. what is food price inflation 8. GLOBAL SCENARIO 9. INDIAN PERSPECTIVE†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 10. CAUSESRead MoreThe Berlin Conference Of 1885 Sought To Regulate European1550 Words   |  7 Pagesabout it is extremely different. The growing influence of China and India in Africa is being watched with severe skepticism. Many people of the world see the two rising Asian economic powers as new colonial masters, exploiting resource rich Africa solely for their own benefit. While the Berlin Conference and doctrines such as the Indian Maritime Doctrine are created today to represent collaboration, there is not a reciprocal relationship between China and India with Africa, but one in which Africans’Read MoreImpact of Fuel Price Deregulation in India1735 Words   |  7 PagesImpact of Fuel Price Deregulation in India Introduction Empowered group of Ministers on Friday, 25th June 2010, took a decision to decontrol the petrol prices increasing it by 3.50 per litre that of kerosene by Rs 3 a litre. While petrol is mainly used by the middle class for cars, kerosene is used by the poor for power. Diesel prices rose by Rs 2 per litre and might be freed up in the future. Cooking gas prices were raised by Rs 35   a cylinder. Govt. has indeed taken a bold step by decidingRead MoreOutline Of An Project On Inflation Essay1141 Words   |  5 Pagesextra hectic to economists, politicians and even people also. Factors on both demand and supply effect the inflation. So the stabilization strategies ought to consequently focus on both demand manipulation as well as supply management. CONTENTS INTRODUCTION REVIEW OF LITERATURE CONCLUSION BIBLIOGRAPHY STUDY ON INFLATION IN INDIA Introduction Inflation means substantial and rapid increase in price of goods which in turn decreases the purchasing capacity of the people. It is a highly controversialRead MoreGlobalization and the Indian Economy2554 Words   |  10 PagesAND INDIAN ECONOMY Overview Indian economy had experienced major rule adjustments in early 1990s. The new-fangled economic change, widely identified as, Liberalization, Privatization and Globalization planned at making the Indian economy as fastest rising market and worldwide aggressive. The sequence of changes taken on with reverence to industrial division, trade and financial division planned at building the economy further effective. By the start of changes to free up the Indian economy inRead MoreGeneric Market And Industry Overview1389 Words   |  6 Pagescare market is shampoo, and the second largest product segment is the styling agent. The key players are PG, Unilever, L’Oreal, and Brynwood, which account for 64% of the market share in the United States (Hair Care in the United States, 2015). The Indian hair care market has been growing in the last few years, and it is forecasted to grow during the next few years. It increased and reached a value of $2,010.6 million. The annual growth rate of the market was 10.9% in the past few years, and it reachedRead MoreThe Use Of Steam By Burning Coal On The World Essay1451 Words   |  6 Pageswith their heavily armed steamboats. Europeans had been cut off from the vibrant and wealthy market of the Indian Ocean by the Islamic empire in the Middle East (). So when Europeans found a waterway around the Cape of Good Hope, allowing for them to enter the market, they were not kind to the peaceful and free trade region of the Indian Ocean. Initially, Europeans upon reaching the Indian Ocean could not instill their policies of forced trade, as the amount of trade between civilizations alreadyRead MoreThe Oil And Natural Gas Sector3323 Words   |  14 PagesEXECUTIVE SUMMARY Introduction The oil and natural gas sector is constituted of three major components – upstream, midstream and downstream. The upstream industry includes exploration and production, midstream includes processing, storing and transporting while the downstream industry includes oil refineries and distribution. It provides consumers with various products like petroleum, gasoline, diesel, lubricants. The purpose of our project is to study the downstream oil and natural gas sector industry