logging in or signing up Impact of oil shocks on indian economy anshulsudamagupta Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 1779 Category: Education License: All Rights Reserved Like it (0) Dislike it (0) Added: November 13, 2009 This Presentation is Public Favorites: 3 Presentation Description The ppt is all about how the oil shocks of crude oil prices impacts the indian economy in different ways. Comments Posting comment... By: parambir (30 month(s) ago) please send me the related material on this topic which is very helful for me to prepare for presentation at parambir.mohali@gmail.com as soon as possible. Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript IMPACT OF OIL SHOCKS ON THE INDIAN ECONOMY : IMPACT OF OIL SHOCKS ON THE INDIAN ECONOMY (Group-9) Section - B ANSHUL GUPTA 068 ARJUN M 070 GOPAL AVASTHI 079 KAUSHIK AGARAWAL 087 OMKAR PARNANDIVAR 097 RIDHHI JAIN 109 Outline : Outline Determinants of oil prices Oil demand in India & China Oil shocks transmission India’s oil dependence Different elastic ties Crude oil prices Impact on India’s GDP and inflation Steps taken by the Govt. and RBI to minimize the impact Conclusions Determinants of Oil Prices : Determinants of Oil Prices Demand economic & population growth Supply reserves & production flow rates investment OPEC conflict & resource nationalism Expectations, risk & speculation Oil Shock Transmission : Oil Shock Transmission Short run: inflation (imported & domestic) current account balance exchange rate volatility monetary policy response Long run: conservation & efficiency substitution of energy & capital INDIA’s Oil Dependence : INDIA’s Oil Dependence Moderate oil intensity (3.5% of GDP) Low oil resource intensity (15% of energy) High oil import dependency (70%) synthetic fuels comprise: 13.6% in 1970s to 22% in 2008, of liquid fuels Transport 83% dependent on liquid fuels Price & income elasticities : Price & income elasticities Slide 8: Source: IMF IMPACT OF OIL PRICES ON GDP GROWTH : IMPACT OF OIL PRICES ON GDP GROWTH Impact of increase in oil prices on growth and inflation levels in India : Impact of increase in oil prices on growth and inflation levels in India Impact on inflation : Impact on inflation Inflation has a inverse relationship with other three Steps taken by the govt. and rbi : Steps taken by the govt. and rbi What Govt. did ? 1. Provided huge amount of subsidies to oil companies to keep them solvent. 2. This increased domestic prices of diesel and petrol. 3. Start looking for alternate energy options to prevent future oil shocks. What RBI did? Increase in CRR, Repo rates. (i.e. used monetary tools to calm down the heat) Conclusion : Conclusion To summarize the study When Oil prices Moves UP : Inflation increases Govt. spending on subsidy increases Foreign currency reserves deplete Our export becomes weaker GDP is affected negatively Share market crumbles Investment decreases Slide 14: THANK YOU You do not have the permission to view this presentation. In order to view it, please contact the author of the presentation.
Impact of oil shocks on indian economy anshulsudamagupta Download Post to : URL : Related Presentations : Share Add to Flag Embed Email Send to Blogs and Networks Add to Channel Uploaded from authorPOINT lite Insert YouTube videos in PowerPont slides with aS Desktop Copy embed code: (To copy code, click on the text box) Embed: URL: Thumbnail: WordPress Embed Customize Embed The presentation is successfully added In Your Favorites. Views: 1779 Category: Education License: All Rights Reserved Like it (0) Dislike it (0) Added: November 13, 2009 This Presentation is Public Favorites: 3 Presentation Description The ppt is all about how the oil shocks of crude oil prices impacts the indian economy in different ways. Comments Posting comment... By: parambir (30 month(s) ago) please send me the related material on this topic which is very helful for me to prepare for presentation at parambir.mohali@gmail.com as soon as possible. Saving..... Post Reply Close Saving..... Edit Comment Close Premium member Presentation Transcript IMPACT OF OIL SHOCKS ON THE INDIAN ECONOMY : IMPACT OF OIL SHOCKS ON THE INDIAN ECONOMY (Group-9) Section - B ANSHUL GUPTA 068 ARJUN M 070 GOPAL AVASTHI 079 KAUSHIK AGARAWAL 087 OMKAR PARNANDIVAR 097 RIDHHI JAIN 109 Outline : Outline Determinants of oil prices Oil demand in India & China Oil shocks transmission India’s oil dependence Different elastic ties Crude oil prices Impact on India’s GDP and inflation Steps taken by the Govt. and RBI to minimize the impact Conclusions Determinants of Oil Prices : Determinants of Oil Prices Demand economic & population growth Supply reserves & production flow rates investment OPEC conflict & resource nationalism Expectations, risk & speculation Oil Shock Transmission : Oil Shock Transmission Short run: inflation (imported & domestic) current account balance exchange rate volatility monetary policy response Long run: conservation & efficiency substitution of energy & capital INDIA’s Oil Dependence : INDIA’s Oil Dependence Moderate oil intensity (3.5% of GDP) Low oil resource intensity (15% of energy) High oil import dependency (70%) synthetic fuels comprise: 13.6% in 1970s to 22% in 2008, of liquid fuels Transport 83% dependent on liquid fuels Price & income elasticities : Price & income elasticities Slide 8: Source: IMF IMPACT OF OIL PRICES ON GDP GROWTH : IMPACT OF OIL PRICES ON GDP GROWTH Impact of increase in oil prices on growth and inflation levels in India : Impact of increase in oil prices on growth and inflation levels in India Impact on inflation : Impact on inflation Inflation has a inverse relationship with other three Steps taken by the govt. and rbi : Steps taken by the govt. and rbi What Govt. did ? 1. Provided huge amount of subsidies to oil companies to keep them solvent. 2. This increased domestic prices of diesel and petrol. 3. Start looking for alternate energy options to prevent future oil shocks. What RBI did? Increase in CRR, Repo rates. (i.e. used monetary tools to calm down the heat) Conclusion : Conclusion To summarize the study When Oil prices Moves UP : Inflation increases Govt. spending on subsidy increases Foreign currency reserves deplete Our export becomes weaker GDP is affected negatively Share market crumbles Investment decreases Slide 14: THANK YOU