Impact of Crude Oil Price Changes on Select Indian Industries

  • Daksh Seth Department of finance, Sri Sathya Sai Institute of Higher Learning, Andhra Pradesh
  • B. Sai Giridhar Department of Management Studies and Commerce, Sri Sathya Sai Institute of Higher Learning, Andhra Pradesh
  • Sundara Krishnaswami GoodWorks Consulting LLC, Texas
Keywords: crude oil, price, global economy, GDP, industries

Abstract

The study quantifies the impact of crude oil price changes on the production, sales turnover and raw material cost of select industries in India where crude oil is a major direct or indirect raw material. The results show that there exists a relationship between crude oil price changes and production of chemicals, coke, and refined petroleum products, a significant impact is observed on the sales turnover of plastic, oil refinery, and automobiles industries. The raw material cost of fertilizers, food processing, and paints industries show a high correlation with crude oil. Energy is the undercurrent that drives economic activity in the world. Fortunes of countries have changed because of crude oil. Its importance to the global economy is unmatched, proven by the fact that oil is responsible for 2.5% of the world GDP. If provided a conducive business environment, companies around the world would like to tap opportunities a billion plus people in India present. India is heavily dependent on crude oil imports thus volatility in crude oil prices is a cause for concern.

Int. J. Soc. Sci. Manage. Vol-3, issue-2: 87-92

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Abstract
550
PDF
581
Published
2016-04-29
How to Cite
Seth, D., Giridhar, B. S., & Krishnaswami, S. (2016). Impact of Crude Oil Price Changes on Select Indian Industries. International Journal of Social Sciences and Management, 3(2), 87-92. https://doi.org/10.3126/ijssm.v3i2.14622
Section
Research Articles