An Examination of the Impact of the Oil Prices and Economic Determinants on India's Economic Development

Abstract

The economic development of developing nations has been impacted by several factors, including the fluctuation of oil and other commodity prices due to environmental and economic degradation. This issue requires the attention of contemporary researchers and policymakers. Consequently, the current study investigates the effect of oil prices and economic determinants such as the wholesale price index, the consumer price index, inflation, and industrialization on the growth of the Indian economy. The study utilized the World Bank database from 1986 to 2020 to collect secondary data. The researchers used the Dynamic Auto-regressive Distributed Lags (DARDL) method to examine the relationships between the study's variables. The findings revealed that oil prices, the wholesale price index, the consumer price index, inflation, and industrialization positively affect India's economic growth. This study assists policymakers in formulating economic development policies with the proper emphasis on oil price fluctuations and economic determinants.