The economic scenario of a country, especially in a developing economy like India generally is affected by foreign exchange rate or international value of currency, crude oil price (if the country is not self-reliant in oil production), foreign exchange reserve etc. The main economic parameter GDP may be affected adversely by such factors if they are not favourable. This is an attempt to correlate these economic factors in recent times in the context of our country and a few developing economies and developed nations so that an idea can be developed how one factor is influenced by the other in respect of different countries. It has been found from the analysis of data of these factors that the GDP though influenced by forex (foreign exchange) rate with respect to dollar, crude oil price, foreign exchange reserve yet the degree of influence is not much significant in the context of India. Forex rate and crude oil price only lowly affects our GDP. However, Sensex or stock market index is quite sensitive to the fluctuation of GDP. For other developing economies and developed nations, under the study, the stock market indexes are quite indifferent or insensitive to behaviour of GDP. Only Indian stock market, out of these countries, is susceptible to behaviour of GDP. In the context of India, this study throws open wider scope for further analysis of various other economic parameters which usually contribute to GDP of the country in recent times. Apparently the GDP is thus quite protected, if not completely, from the adverse behaviour of these important parameters (crude oil price, forex rate & reserve) probably because of other economic parameters which are driving our economy and have developed buffer or cushion solidly in recent times.
___________________________________________________________________________________
Keywords: GDP, Forex Rate, Crude Oil Price, Stock Index.
JEL Classification: H54, G32.
