ranjan

India is the 7th largest country with land mass of 3.30 Million Square Kms. and second largest in population of over 1.2 Billion, accounts for 17.2% of world population. The country has to produce about one Trillion worth of GDP to fulfill needs of its population. In order to produce this one Trillion worth of output, India needs 2.5 Million of Barrels of oil per day which is 4.4% of total world demand for oil. This ever growing demand creates profound influence on growth and inflation levels in India. International oil prices is to effect the domestic prices. The administered price mechanism had shielded the country from impact of oil shocks. CURRENT POSITION Government of India has given up the administered price mechanism in oil sector and linked oil prices in June 2010 and Diesel prices in Oct. 2014 with international oil prices. Oil prices certainly affects Indian economy where US Dollars is the acceptable currency in international market. The impact has been assumed