INDUSTRIAL GROWTH….. and HOW PETROL plays an role in Industrial Growth and Employment

Head Pic The Manner in which the US cut down it's usage of the ENERGY to stabilise it's Economy

INDUSTRIAL GROWTH….. and HOW  PETROL  plays an role in Industrial Growth and Employment

If one has studied the production and the  part that PRODUCTION MANAGEMENT plays  in Managerial Economics correctly he would have studied the Average Revenue Curve, the Average Fixed Curve and the Average Marginal Curve. These three curves are important especially from the national point of view as they totally signify the trend of the nation or the country in terms of the income that could be generated and the employment that could be possibly generated.
The Logis is simple that the culmination andf the individual infeences that the curves mentioned here throws and it is - IF YOUR INCOME LEVEL GOES UP ,  AND THE EXPENDITURE IS MAINTAINED STATIONARY, ONLY THEN CAN YOU GENERATE THE EMPLOYMENT
I see a LOT of HOWLS and CRY when it comes to certain point that regards to the employment and relates to the income. One can visualize to say that the employment generation is crippled to its worst and the income also has plummeted to a level which is very low. A case studies could explain the malady-:
Take for an example and I cite those in a bit of very brutal manner . When between the period 2004 to 2014,  the UPA Government was there there  ruling the nation, there was NO increase in the GDP. India’s GDP from 1984 to 2004 remained constant at an average of 5%. Every year the shortage of the GDP was 3% per annum. In a span of 30 years from 1984 to 2014 the shortage had been 3% x 30 = 90%.It could be gauged that the country fell back by 11 years as 8% has been the targeted GDP per year, hence 90% roughly means 11 years.
IN OTHER WORDS IT MEANS THAT FOR 11 YEARS THERE WOULD NOT  HAVE BEEN ANY EMPLOYMENT GENERATION. Where could the employment come or it could have been generated,  from,  if there is NO enhancement of the GDP. An increase of the GDP by 1% over the fixed 8 % would mean that 1 crores of employment would be generated.
Now when the UPA Government took over their priorities everytime was-:

1). RAJIV GANDHI MUFTH KA DAAL BATWAARA KA YOGANA ie free daal distribution

2). RAJIV GANDHI MUFTH KA CHAWAL BATWARA KA YOJANA ie free rice distribution

3). RAJIV GANDI MUFTH KA KEROSENE BATWARA KA YAOJANA ir free kerosene for poor

4). RAJIV GANDHI MUFTH KA COLOUR TV BATWARA KA YOJANA ie free colour TV

5). RAJIV GANDHI MUFTH KA 1200 gms kaha BATWARA KA YOJANA ie free food worth 1200 grams per day

These they said was the schemes that they wanted and in certain cases
When you make EVERYTHING free- your own treasury goes for free to everybody. Their gamut was-:
MAKE IT FREE FOR EVERYBODY AND GARNER THE VOTES FROM EVERY SECTION OF THE SOCIETY
I’m very SURE that these kind of FREEBIES would have come from the ideas of   the trio of  Salman Haider-Digvijay Singh-Mani Shankar Iyer. They have NEVER even in their LIFE touched even a PAGE of ECONOMICS and what they had studied was either LAW or HISTORY and even Engineering (Diggi Bhaiiya) . If you have NEVER even touched the page of ECONOMICS do not PANT the Indian Economics. Indian Economics is TOTALLY based on TWO facts-:
1). AGRICULTURE
2). BANK LENDINGS
The previous Government neither paid any INTEREST to even one of the Economics element, of the  two- leave apart the ablest one-of-the- two. In the name and the game of Agriculture, they went on a SPREE to waive all the dues of the farmers which hit the banks like anything and in the name of Bank Lending they started curtailing the lending rates of the Banks, which told upon the cash-reserve ratio of the banks.
The “ CHIDAMBARAM LAW OF TAX REFORMS ECONOMICS ” : PANTS DOWN
Then came Mr Chidambaram. Obviuosly when a person like Chidambaram comes, he brings in a LOT of IDIOTS and if there are already that exists as an IDIOTS he makes them a winner of PADMA SHRI and Montek Singh Ahluwalia was one of them.
“ THE RUBBISH STUDIES OF ECONOMICS THAT HE DID IT IN THE HARVARD WHICH IS TOTALLY AGAINST THE FUNDAS OF INDIAN ECONOMICS WHICH CRUCIFYINGLY APPLIES ON INDIAN ECONOMICS AND  TELLS AND RETELS  VERY  WRONGLY ABOUT THE TAX AND COLLECTION REFORMS- HE KEPT ON APPLYING IT ON THE INDIANS ”.
The Bank interest rate were lowered, the invest interest rates were lowered, the long terms interest rates and the face value of the investment was lowered by this IDIOT who could have been a WORST lawyer if the Gandhi family did not support him to become a Minister in the Congress Government,  all of a sudden he became a man who THOUGHT himself to be a FINANCE man as if he was coming from the DARBAR of Lord Shiva as if HE was and  as if HE is the MAHARAJ KUBER, the ACOOUNTANT of the TRIDEV over here in this EARTH.
The resultant was that the investors of every type lost their interest to invest for a long or a short term and the revenue collection saw a GREAT fall. To make it up, he went on taxing and taxing and taxing and taxing the common man as if the COMMAN MAN WERE AND ARE HIS “ BAAP KA MAAL” ie his Father’s property.
The UPA had won the election in 2004 on the DICTUM of “ AAM-AADMI ” ie the common man, but when they held and commanded the power they RAPED the common man like anything here in India. By the end of 2014 when they had to LICK to leave their seats saddled in the POWER they had realized that the people were CLEVER enough to make them a “LANGDA-ROTTEM-AAM” ie the ROTTEN mango of the “ LANGDA ” variety.
Then came the BIGGEST blow. The entire WORLD was hit economically and one after one people all over the places were asked to leave their job. Within no second the employees world over from their organization were asked to quit their job. This again brought about a fall in the collection of the taxes and revenue world over and India was no exception
Naturally when the Average Revenue curves falls- there is a low level of income and the revenue collection too takes a nosedive. When there is a shortage of revenue collection how can there be any opening of any enterprise which would create any employment. Again when the Average Revenue curves falls , the Average Mariginal Cost Curve too falls. When it falls there is no chance of any new enterprise to bet set, no new avenues of any job etc to take place. How can you absorb new people when the there is no revenue that is being created.
Since 2008 there had been atleast two crisis , ie, the Financial crisis that the world had seen. Many a jobs were cut short, many organization world wide were forced to be closed, many a Banks went into a financial crunch or crisis and the flow and the circulation of the money too suffered. Over it here in India the UPA Government to win the national election went far ahead to announce certain schemes that were detrimental to the interest of the nation.
Facing a world wide crisis of the finance where the Banking system all of a sudden collapsed it went far ahead to announce all the waiver schemes for the farmers , for this and for that and for no reason to believe them at all. All of a sudden when you waive the loans of the farmers which was into many a thousand of crores of rupees, and the electricity waivement  which was also running into a thousand of crores of rupees, the Bank was at loss. The money had gone out of the Banks as the loans to the farmers,  and there was no chance of them to get the money back. The cash crunch forced the Banks to cut off their lending rates and the CRR suffered like anything. There was a WHOLESOME inflation and people expecting Mr Mannu Bahi Sahab who the CONGRSS projected him as the BEST ever ECONOMIST to have been born in India which he was NEVER,  to overcome it- gave him another chance .They thought that he would make India something a BIG-ECONOMIC-POWER but when he was NEVER anywhere near anything BIG that the economics and economy demanded. HOW COULD HE TRANSFORM ANYTHING.
The another chance of the UPA to stay at the POWER was a JOKE. Instead of falling back to make the microscopic economy correct and bringing about a reforms in the cash collection structure they went far ahead to restructure the macroeconomics which was not at all needed. The micro economy was the need of the hour but what India received was the economy of revenue where one by one effort was made to collect the money in a very large manner.It saw all the scams earthing and unearthing. The entire money from the market was swirled and scooped. Now when your bank is in such a stage, what will the bankers and the finance do.
Now there are certain people who question the Modi Government for everything that was done as a wrong by the Government by the ones who ruled from the period of 2004 to 2014. When was India’s Export, Manufacturing, Capital, Forex, Banking, Investment, and Job Opportunities right and upto order. .WHEN WAS IT. It was NOT .
If that was the case, RESERVATIONS POLICY WOULD NOT HAVE BEEN THE ORDER OF THE DAY.When was India’s education sector was correct and all correct. When was the defence sector all correct. If it was then why is the Gun Carriage factory and the Ordinance factory went off the place and were manufacturing nothing. Which sector of India was good even for a year, leave apart even for a year- even for a month.
When was the power sector doing good. If that is the case then why is that in Bangalore we have power cut for every half an hour in each hour and that also for 12 to 14 times a day for every 24 hour. When was our transport sector good. If that was why is that the Railways did not come up with the kind of the trains that we have in Kolkatta and Delhi- the tube rail or so on and so forth.
When was the roads and the pots good as service provider. When was India a GOOD nation for all these economic factor- it never was . All of a sudden we see the people barking, clamping and tramping Mr Modi for everything, his Govt for everything. Mr Modi is in the chair for SIX years now. It will take ablest another FIVE years to put the Indian economy that was down for the dump between the period between 2004 to 2014 to the point of NO-PROFIT-NO-LOSS and that is a  cruxi-fying and a crucifying matter IT IS NO JOKE.  11  ie eleven years for Mr Modi to cover up the nation first for the loss it suffered in the last  TEN years between 2004 to 2014,  and then to start it from there with a NO-PROFIT-NO- No-LOSS sheet for the last 30 years to cover it up as an whole, and that again will be a NOT-POSSIBLE-KIND-OF-A-TASK-FOR-HIM.. This nation is 73 years old after it gained the  Independence, so one should calculate the amount of time that would be required to cover up the loss for the last 73 years.
Every sector will need atleast 15 years of time to stand on its own leg, and that is the condition of the nation. If you have not studied Economics- I cannot help. If you have not studied IMPORT-EXPORT Management, I cannot help. Study these subjects and assimilate it with Econometrics- you will come to know where India stands and who has been responsible to bring India into these kind of BUTCHERY-MESS.
Simply following some poster, or simply saying that I’m the sufferer, I’m the sufferer does not helps. EVERY INDIAN IS A SUFFERER because tof the FOOLISH emporeres that we had from time to time to economise us. Yes the duties of the MLA, MP, and the host of other people ought to be also measured and the facilities offered to them also needs accounts in terms of its balance and the check.
“ Accountability is the need of the minutes and seconds and not only of the hours” .
Leave these Digvijay Singh, leave these Congressite’s. They were GOOD for NOTHING , they are GOOD for NOTHING and they will be GOOD for NOTHING. They can only ENJOY because the OWLS that is in the Government and that is saddled in the POWER will  like them to enjoy.Those OWLS put them to the place for these to enjoy. Owls cannot see in the day and people do not like to see in the night. That is the only difference. I say it because the OWLS gets out of their nest in the NIGHT to PREY and people in the NIGHT do not like to see anything except the BOTTLE full of wine and the LADIES to entertain them. Hence the EYE-TO-EYE-CONTACT between the OWLS saddled in the POWER and the common man really enjoying the GLASS-AND-THE-LASS remain away from each other.
If election would have been held in the NIGHT with the  voters to cast their franchise right in the night,  rather than the day these CONGRESSI OWLS would have enjoyed even in this time as well.
PETROL…..PETROL…..PETROL….. IT IS THE “ HONEY ” AND BIG MAN’S WORLD
Gasolene, crude oils and the petroleum products infact have become the “ DOLLORS” and the “GOLD for the modern day’s business and business now completely depends upon it.
The price of petrol and it’s product now determines the value of the currency of a nation at this moment of time and that infact makes any nation to stand in terms of it competiting against the dollors.
Petrol infact has a crucifying or a BLESSING when it comes to determining the international price of any commodity that relates to export and import and that is why I’m attaching  my studies with the importance of relating and attaching petrol with the current FINANCIAL scenario.
I will write in short why is that inspite of the fall of the petrol price in the international market- theIndian Government is not curtailing the prices to a very large extent.
It revolves around a little bit of ORGANISATIONAL MANAGEMENT & ITS RESTRUCTURING - and a little bit of PRICE STRUCTURED ECONOMY.
It will make an interesting study.What a daunting question! With oil prices increasing rapidly in the recent past, it is hard not to wonder what has caused it and just what effect it might have on the rest of the economy. Let me begin by discussing the evolution of oil prices over time. 
How have oil prices behaved in recent decades?
Figure 1 shows the history of the price of oil since the early 1950s. The price shown is the monthly average spot price of a barrel of West Texas intermediate crude oil, measured in U.S. dollars. The gray bars in this and all the following figures represent recessions, as defined by the National Bureau of Economic Research.

Figure 1.  Spot Oil Price ($ Barrel)

As you can see from Figure 1, a long period of oil price stability was interrupted in 1973.  Please see the RED LINED CURVE and you will find that the prices of petrol were flattened to an large extent till 1973 as it is visible on the X-axis of the curve. In fact, the 1970s show two distinct jumps in oil prices: one was triggered by the Yom Kippur War in 1973, and one was prompted by the Iranian Revolution of 1979. Since then, oil prices have regularly displayed volatility relative to the ’50s and ’60s.

Figure 2 shows which is down below reflects and retells all about  the “real” oil price, calculated by dividing the price of oil by the GDP deflator. 1 This removes the effect of inflation and thus gives a more accurate sense of what is happening to the price of the commodity itself.  In essence, the “real” measure allows you to compare oil prices over time in a way that you can’t when inflation is also part of the change in price. You can see that real oil prices have varied a lot over time, and large fluctuations tend to be concentrated over somewhat short periods. You can also see that by the spring of 2008, as this posting was prepared,  then, the real price of oil has easily exceeded that of the late 1970s.
Please see for yourself in the graph, in the X-axis. You will find that immediately when the year 1975 started the price of petrol started jumping Beween the year 1975 to the year 1980 when the raph started swirling up- the international price of the petrol shot up form the 30points which could be assumed as thirty dollors, say to about 77 dollors ir 77 points.It was a QUANTUM JUMP of 2.56 the times .
From 1980 the OPEC ( OIL AND PETROLEUM PRODUCING COUNTRIES) paid a lot of heeds to stabilizing the price of the petrol but the 1991 Iraq-Kuwait-U S A war when President Junior Bush was the President of USA  the countries tried out their best to freeze the price of petrol to the largest extent possible but after 1997 it was out of their hands to do so. It was because the WORLD WIDE  AND INTERNATIONAL inflation was such and the monetary value of each countries’ money and it’s value started dipping as against the dollars and to make up each country started escalating the price of petrol .That is evident from  the graph, as we see here.
From 1997 the international prices of petrol started jumping up and by 2010 the prices of the petroleum product rose much more than EIGHTY POINTS on the scale of 100 and from there the prices of the petrol on TWO different occasion fell by barrles but none of the countries could bring the price of the same LOW and VERY LOW  because of the differentials of their estimated revenue from their budgets to earn the currencies and the match their national expenditure and ever since then petrol and prices have been too costly for a normal human being to bear that.
INFACT NOW THE WORLD OVER THE GDP DEPENDS UPON THE VALUE OF PETROL.

The more we SAVE on petrol the more will the country have the abundancy of it’s saved money to invest in other sectors of nation building and prosperity but that  cannot happen and that cannot be visualized at all either now or for the future

Figure 2.  Real Oil Price

Why are oil prices rising?
It is likely that both increases in demand and fears of supply disruptions have exerted upward pressure on oil prices.With this in mind we can also visualize the GLOBAL DEMAND and that also has created more and more usage of petrol and it’s derivatives in terms of it’s products.
Global demand for oil has been increasing, outpacing any gains in oil production and excess capacity.The Iraq-Kuwait-U S A war in 1991 saw Iraq first destructing so many a OIL BASINS at Kuwait and then also destructing so many of it’s oil producing bays and the basins that in totality the damages are such that about FIFTEEN YEARS of the petrol reserves have gone to the SHRINKS .  A large reason is that developing nations, especially China and India, have been growing rapidly. These economies have become increasingly industrialized and urbanized, which has contributed to an increase in the world demand for oil. In addition, in recent years fears of supply disruptions have been spurred by turmoil in oil-producing countries such as Nigeria, Venezuela, Iraq, and Iran
The breathtakingly sharp increase in the price of oil in the last half of 2007 and first half of 2008 has led many to argue that increased speculation in commodity markets has played a role, and indeed there is evidence of increased activity in these markets.  However, whether speculation is playing a role in high oil prices is open to debate .It is also useful to remember that both the demand for and the supply of oil react sluggishly to changes in prices in the short run, so very large changes in prices can be required to restore equilibrium if demand should move even modestly out of line with supply.
Implications :: Micro level affected , Macro level “ SHRINKED ”
As far as the implications of higher oil prices, there are both microeconomic and macroeconomic answers to that question. I will address both of these aspects in turn. 
How do high oil prices affect the economy on a “micro” level?
As a consumer, you may already understand the microeconomic implications of higher oil prices. When observing higher oil prices, most of us are likely to think about the price of gasoline as well, since gasoline purchases are necessary for most households. When gasoline prices increase, a larger share of households’ budgets is likely to be spent on it, which leaves less to spend on other goods and services. The same goes for businesses whose goods must be shipped from place to place or that use fuel as a major input (such as the airline industry). Higher oil prices tend to make production more expensive for businesses, just as they make it more expensive for households to do the things they normally do.
It turns out that oil and gasoline prices are indeed very closely related. Figure 3 plots average monthly oil prices from 1990 through early 2008, using the spot oil price for West Texas intermediate (right scale, thin blue line, measured in dollars per barrel) and the U.S. retail gasoline price (left scale, thick red line, measured in cents per gallon).
One might find it ridiculous to compare the US trend with the Indian trend but when accounted in terms of the Indian currency by converting that the Indian trend also reveals the same curve and the graphs
The  Indian graph now after the year 2015 will show a different curve and the reason is more and more household in India now enjoys the gas cylinders as a useful mean of consumption after the Modi Government has provided atleast ONE cylinder perfamily living below the average poverty line whose percentage in this country is well over 70 percent
The two series track each other very closely over time: increases in oil prices are accompanied by increases in gasoline prices. As shown in the graph, the correlation coefficient (denoted “r”) for the two series is 0.98. Moreover, the monthly changes in oil prices and gasoline prices (not shown) also are very highly and positively correlated.     
If you properly look into the graph you will find the rate of the gasoline ie the consuming gas which we call it the cooking gas and the price of the petrol in India isd almost the same. We pay about Rs 80=00/per litre for petrol and we pay about Rs 611=00/per cylinder with subsidies. It works about Rs 43-00/Kgs of gas with the subsidies but if you have to take the amount that the Government pays through it’s nose then the costing almost works out to be the same and it is highlighted in the graph Figure 3 as  enumerated as under. So be it the US or India or be it any part and place of the WORLD the rates of the petroleum and the gaseous products are the same . That is the HITCH and the CRUX  for the end use customer , and that may be the CRUNCH for every Government in the WORLD.

Figure 3.  U.S. Gasoline and Oil Prices

 So, when oil prices spike, you can expect gasoline prices to spike as well, and that affects the costs faced by the vast majority of households and businesses.

What effects do oil prices have on the “macro” economy?
I’ve just explained how oil prices affect households and businesses; it is not a far leap to understand how oil prices affect the macroeconomy. Oil price increases are generally thought to increase inflation and reduce economic growth. In terms of inflation, oil prices directly affect the prices of goods made with petroleum products.  As mentioned above, oil prices indirectly affect costs such as transportation, manufacturing, and heating.  The increase in these costs can in turn affect the prices of a variety of goods and services, as producers may pass production costs on to consumers. The extent to which oil price increases lead to consumption price increases depends on how important oil is for the production of a given type of good or service.      
Of late this modality of the business to pass on the additional cost to the consumers infact has been the real concern and the cause for the inflation to play it’s major role. THAT AFFECTS THE BANKS when it comes to decide the CASH-RESERVE-RATIO and the Bank’s calculation to maintain it goes in for a TOSS. The lending rates of the bak and the interest calculation too sees a spike for the Bank to recover it’s money and that in the long run hits the consumers which in the longest run hit’s the economy of the nation and oversall it has a crucifying effect of the budgeting system of any nation .The WORST to suffer in thus case are the under developing countries and India is NO exception.
Oil Prices : A Source Of “ STIFLING ” The Growth.
Oil price increases can also stifle the growth of the economy through their effect on the supply and demand for goods other than oil.  Increases in oil prices can depress the supply of other goods because they increase the costs of producing them. In economics terminology, high oil prices can shift up the supply curve for the goods and services for which oil is an input. 
High oil prices also can reduce demand for other goods because they reduce wealth, as well as induce uncertainty about the future. One way to analyze the effects of higher oil prices is to think about the higher prices as a tax on consumers . The simplest example occurs in the case of imported oil. The extra payment that can now no longer be spent on other kinds of consumption goods.
In fact The US Dollars and it’s consumption affects the Indian money and it’s consumption
Ofcourse when I talk of US how can I ever forget to mention India ans the Indian rupee has a DIRECT relation with the dollars of the US and it’s inflation because the hike in the dollars degrades and demeans the Indian currency in the international market and that completely knocks-off India when it comes to buying the goods from abroad or when it really boils down the import . The production too has a measurable effect on the same and the good produced thereafter sees a spike in the prices which affects the consumption. That is that and that tosses the entire economy of India .   
Despite these effects on supply and demand, the correlation between oil price increases and economic downturns in the U.S. is not perfect.  Not every sizeable oil price increase has been followed by a recession. However, it is definitely the opposite in India.Anything in terms of the oil price increase in India has and always has it’s terrible and crucifying effect on it’s people and there  is no sign of FRUCTIFICATIONS that we see. Here once the price rises it rises for ever and ever.There in the US ,  five of the last seven U.S. recessions were preceded by considerable increases in oil prices .
Is the relationship between oil prices and the economy always the same?
The two aforementioned large oil shocks of the 1970s were characterized by low growth, high unemployment, and high inflation (also often referred to as periods of stagflation).  It is no wonder that changes in oil prices have been viewed as an important source of economic fluctuations. 
However, in the past decade research has challenged this conventional wisdom about the relationship between oil prices and the economy. As  to  note, in  the late 1990s and early 2000s there was the period, which were  the periods of large oil price fluctuations, which were comparable in magnitude to the oil shocks of the 1970s. However, these later oil shocks did not cause considerable fluctuations in inflation (Figure 4), real GDP growth (Figure 5),in the scenario of US but REVERSE has been the case of India and it is always the reverse here in India.  The Consumer-Index , it’s graph and it’s bearing on the consumer,  or the  effect it has on the unemployment rate, in the LONG run now all depends upon the prices of petrol .
I shall not drag my write up on this more and more however the oil prices when it plays upon the production which takes a hit and spirals reverse in case of upwards or when it spirals downward the production suffers and that is a CYCLE-CHAIN-RELATION-AND-REACTION that it holds on the employment and finally the consumption. These figures are well ascribed and depicted here in the figure
                      Figure4 : OilPrices and CPI Inflation

 

Figure 5.  Oil Prices and Real GDP Growth

A caveat is in order, however, because simply observing the movements of inflation and growth around oil shocks may be misleading. Keep in mind that oil shocks have often coincided with other economic shocks.  In the 1970s, there were large increases in commodity prices, which intensified the effects on inflation and growth. On the other hand, the early 2000s were a period of high productivity growth, which offset the effect of oil prices on inflation and growth. Therefore, to determine whether the relationship between oil prices and other variables has truly changed over time, one must go beyond casual observations and appeal to econometric analysis (which allows researchers to control for other developments in the economy when studying the link between oil prices and key macroeconomic variables).
Studies have been done in a large and in a fair manner but the observation NEVER has been allowed to put in it’s TRUEST style. The various Government here in India has always capped and put a lid on the real notings and the words to come out to the best of the public Formal studies find evidence that the link between oil prices and the macroeconomy has indeed deteriorated over time. For example,  there was an suggestion and it wa suggested that the structural break in the relationship between inflation and oil prices occurred at the end of 1980s but there were NOT many an ears to hear it and that did not meet the eye with the Union Government here at India. .   If you take a look.. better take a look  at the responses of prices, wage inflation, output, and employment to oil shocks.  You will come to feel the SHOCK . They too at US find that the responses of all these variables to oil shocks have become muted since the mid-1980s. 
Why might the relationship between oil prices and key macroeconomic variables have weakened?
Economists have offered some potential explanations behind the weakening link between oil prices and inflation. In many a developed countries all around the world and in the developing countries the economist from India and Bangladesh did  suggests increases in energy efficiency as one explanation.  Indeed, as shown in Figure 6, energy consumption per dollar of GDP has gone down steadily over time. This means that energy prices matter less today than they did in the past.  It was suggested by many a notable US economist and later when the research and experiments were done on them by many an economist all over the world, many founded and there were  suggestions with   additional explanations.
Impact of the “OIL-SHOCK” ON THE ECONOMY  
There have been certain factors which are related to the microeconomy which implied on the macro economy have changed the overall bearings of the national economy and it brought about a change in the ECO-BEHAVIOUR-PATTERN of the economy. They find that increased flexibility in labor markets, monetary policy improvements, and a bit of good luck (meaning the lack of concurrent adverse shocks) have also contributed to the decline of the impact of oil shocks on the economy. 
Finally, how monetary policymakers treated the economic shocks caused by rising oil prices also may have played a role in the impact of the shocks on economic growth and the inflation rate. Specifically, some have argued policymakers tended to worry more about output than inflation during the oil shocks of 1970s and did not adequately take into account the inflationary aspect of the oil shocks when fashioning a policy response to them .In the case of the U.S., and that in the repercussion that it had on the Indian economy,  since households and firms sensed that the Fed was not going to pay a lot of attention to inflation, they probably realized that the oil shocks would lead to substantially higher future inflation and adjusted their expectations accordingly.
However unlike the US the country of India just did not give and did not pay any attention to the same and allowed the things to run and go in the normal manner that it ws functioning. It had it’s worst performance between the period 2006 to 2010 and many industries, the small scale and the medium scale went in for a closure
In India there were over 1000 Government sector and about 10,000 private and small scale industries and about 15,000 medium scale industries came to an  halt or it’s abrupt end in toto. It wss because of these following factors-:
1). The spike in the oil prices curtailed them to produce the actual quanitity that they were producing.
2).  The failure of the power and electricity.The self generated powers that they drew from their own resources to buy the diesels and maintain their transformers too did not meet with the required criteria and the sproduction fell.
3 ) .   The supply and the demand factor was disturbed heavily because of this.
4). The labour prices and the wages were forced to be dragged down and there were many who were asked to leave their job.
By contrast, the Federations world over  in the 2000s  and ever since that is more committed to fighting inflation, here in India it was more concentrated to fight the elections and to somehow saddle itself in power without REALLY working on the EQUILISATION of the Indian economy,  the public knows it, and the result has been that, even though headline inflation has risen noticeably because of the direct effects of oil and commodity shocks, core inflation and inflation expectations remain contained.
The lack of major output effects of oil price shocks since the 1970s calls into question what role they played during the two recessions of that period. In other words, one possible reason why oil shocks seem to have noticeably smaller effects on output now than they did in the 1970s is that the world has changed. Another is that the effects of oil shocks were never as large as conventional wisdom hold, and that the slow growth of that decade had to do with other factors.
Well that is it. Well that also raises the QUESTION about HOW WE CAN SAVE ON MEDIUMS THAT PRODUCES ENERGY. Will be able and would we able to save on them.
NO – never is my belief and my answer
Regards

Pics
Shyamal Bhattacharjee
Mr Shyamal Bhattacharjee, the author was born at West Chirimiri Colliery at District Surguja, Chattisgarh on July 6th 1959 He received his early education at Carmel Convent School Bishrampur and later at Christ Church Boys' Higher Secondary School at Jabalpur. He later joined Hislop College at Nagpur and completed his graduation in Science and he also added a degree in    B A thereafter. He joined the HITAVADA, a leading dailies of Central India at Nagpur as a      Sub-Editor ( Sports ) but gave up to complete his MBA in 1984 He thereafter added a Diploma In Export Management. He has authored THREE books namely Notable Quotes and Noble Thought published by Pustak Mahal in 2001 Indian Cricket : Faces That Changed It  published by Manas Publications in 2009 and Essential Of Office Management published by NBCA, Kolkatta  in 2012. He has a experience of about 35 years in Marketing .