An Empirical Study of the Impact of Oil Prices on the Key Economic Indicators

India's crude oil consumption needs are increasing rapidly with its economic growth. India imports most of its crude oil requirements. There is thus heavy pressure on the Indian economy in case of volatility of global crude oil prices. The repercussions of the recent oil crisis were likely to affect a shift of real income amongst countries of the world. This study analyzes the relationship between crude oil prices and key economic indicators like Real GDP (Gross Domestic Product) growth rate, Inflation rate and Current Account Deficit (CAD). This analysis is made in order to facilitate policymakers with trends to help make appropriate estimates for the future. Crude oil is a non-renewable resource; its consumption thus has to be rightly appropriated. The rising demand for crude oil calls for some necessary action on part of the government to encourage use of other renewable resources. This makes sure the country advances in the path of sustainable development.