Impact of COVID-19 on Import and Export of Petroleum Products and Crude Oil in India

Abstract

Imports and export have a significant contribution to increasing the effect of economies of scale and industrialization and lead to an increase in foreign exchange earnings. The oil and gas industry is a prime factor of development in the Indian economy. The natural gas and petroleum sector of India contributes one-seventh percent of the South Asian countries. Petroleum products can be considered ranked among the top five contributors of export trade in India. With the spread of COVID-19 at an exponential rate leading to shut down of industries, manufacturing, transportation, and offices, it has widely impacted the global supply chain. This research aims at studying the effect of COVID-19 on the export and import volumes of petroleum products and crude oil in India. Along with that, the research also covers the changes observed in the consumption and production of petroleum products and domestic and international exchange rate of crude oil before and after the outbreak of COVID-19.