A STUDY ON THE IMPACT OF CRUDE OIL PRICES ON INDIAN ECONOMY

Crude oil continues to be a critical commodity influencing the Indian economy because of the country's substantial dependence on imported petroleum products. The study examined the effects of crude oil price fluctuations since 2015 on inflation, transportation costs, industrial production, imports, exchange rates, financial markets, household expenditure, and economic development. The findings demonstrate that rising crude oil prices increase import expenditure, production costs, transportation expenses, and inflation while reducing consumer purchasing power and industrial profitability. Exchange-rate movements further influence the domestic cost of imported crude oil. The study also highlights the importance of government policies supporting ethanol blending, electric vehicles, renewable energy, and domestic energy production in strengthening India's energy security. Overall, stable energy policies, diversified energy sources, effective fiscal management, energy efficiency, and careful economic planning are essential for reducing India's vulnerability to international crude oil price fluctuations. These measures can contribute to greater economic stability, sustainable development, and improved resilience against future global energy-market shocks.

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