Empirical Study on relationship between India’s Index of Industrial Production of Manufacturing Sector and Crude Oil Prices

Abstract

This research paper is in the context of India’s manufacturing sector
and crude oil prices. The paper attempts to investigate relationship
between Index of Industrial Production of manufacturing sector and
Crude oil prices. India is oil importing country and fulfils its demand
by imported crude oil. Hence it is very much interesting and essential
to study the impact of crude oil prices on manufacturing sector. The
data from April-2005 till Jan-2017 has been used for the study. The
study has followed various methods of econometrics for analysis like
unit root, Johansen Co-integration test, and VAR model. The study
find absence of long term cointegration between variable, and
attempts to establish relation with VAR model.