The Effects of Crude Oil Price Surprises on National Income: Evidence from India

The goal of this study is to look into how changes in crude oil prices affect GDP per capita and exchange rate fluctuations.to investigate the influence price shocks on movements. This research employed yearly time series data for oil, (USD/INR), capita, from 1990 2020. Arithmetical tools such as Descriptive, Unit Root, Granger Causality Test, OLS Model were applied. present discovered a strong bi-directional causality effect Dubai rates, well rates WTI prices. diagnostic tests successfully passed by estimated models. According model, was driven only although influenced both over period. key policy recommendation derived analysis that Reserve Bank India (RBI) must depreciate rupee, first restore much-needed stability, then stimulate domestic manufacturers, finally, attract foreign capital inflows.