AN ANALYSIS ON CHANGES IN BEHAVIOURAL ASPECTS OF PRICE INDEX OF INDUSTRIAL PRODUCTION OF INDIA DUE TO CHANGES IN CRUDE OIL PRICE: A STUDY

This paper investigates that how the behavioural aspects of price index of industrial production of India is impacted by the crude oil prices variations by utilising the data related to price index of different industry for the period 2012 to 2022. Using the econometric model along with different variables, the paper will finds that an rise in the crude oil prices, has an encouraging and extremely influence on Indian industrial production. This paper is based on the different crude oil prices i.e. imported, on shore, off shore and weighted average crude oil prices, which are independent variables. The price index of industrial production of India is divided among four sectors i.e. manufacturing industry, mining and quarrying industry, electricity industry and general industry. Furthermore, the magnitude of the rates of crude oil coefficient, directs the standing of rates of oil in shaping the price index of industrial production in India. With reference to the prices of crude oil, the study shows that the price index of industrial production of India are inclined to, to positive oil price variations mainly because they depend heavily on crude oil.