Sarcouncil Journal of Economics and Business Management

Abstract: Crude oil plays a pivotal role in shaping the economic structure and development trajectory of India, a country that is heavily dependent on imports to meet its energy requirements. This study aims to provide an empirical and analytical assessment of crude oil economics in India, focusing on price dynamics, demand-supply trends, and their macroeconomic implications. Given the volatility in global oil markets, fluctuations in crude oil prices significantly influence key economic indicators such as inflation, fiscal deficit, exchange rate, and balance of payments. The study utilizes secondary data collected from authoritative sources such as the Reserve Bank of India, Ministry of Petroleum and Natural Gas, and international energy databases. Employing econometric tools and time-series analysis, the research examines the relationship between crude oil price movements and major macroeconomic variables in the Indian context. The study also evaluates the transmission mechanism of global oil price shocks into the domestic economy. Furthermore, the research critically analyses government policies related to fuel pricing, subsidies, and taxation, highlighting their impact on economic stability and public welfare. Special attention is given to India’s increasing import dependency and its implications for energy security and sustainable growth. The findings of the study are expected to contribute to a better understanding of crude oil economics in India and provide policy recommendations for mitigating adverse effects of oil price volatility. The study emphasizes the need for strategic policy interventions, diversification of energy sources, and strengthening of economic resilience to ensure long-term sustainability.