Phase IFoundation
Background
Overview
India is the world's third-largest consumer and importer of crude oil. Fluctuations directly impact India's energy security, fiscal health (subsidies), current account deficit, and domestic inflation, making it a critical factor in economic policy and international relations.
Global crude oil prices are determined by a complex interplay of supply and demand factors, geopolitical events, and speculative trading. As a critical global commodity, fluctuations in oil prices have significant macroeconomic implications, particularly for oil-importing nations like India, affecting inflation, trade balances, and economic growth.