International Journal of Advanced Research and Development

Authors
Narendra N Dalei, Hiranmoy Roy, Anshuman Gupta

Abstract
Considering United Arab Emirates, Nigeria, Kuwait, Saudi Arabia, Iran, Iraq, Venezuela, Malaysia, Mexico, Qatar, Brazil for the time period 2000 to 2014 as the major crude oil trading partner of India effort has been made in this study to estimate crude oil import function of India using identified macroeconomic factors viz. GDP per capita, crude oil consumption and production and FDI of respective countries. Using fixed effect model of panel data analysis in terms of pooled OLS using country specific dummy and their interaction with macroeconomic factors, allowing intercept and slope coefficient to vary across countries we estimated the crude oil import function for India. Our findings show that UAE remained relatively most preferred nation than Saudi, Iraq, Iran and Malaysia for India in terms of import of crude oil; controlling all other factors except GDP per capita. UAE remained relatively and significantly least preferred nation for India than Nigeria, Iran, Mexico, and Venezuela to import crude oil. GDP per capita play important role in predicting crude oil import of India with UAE being relatively most preferred nation than Venezuela, and Kuwait other things remaining constant. We suggest that macroeconomic planners, policy makers, and crude oil import companies need to take judicious decisions in implementing oil import policies and import of crude oil from these major import partner of India.