Impact of Interest Rate, Inflation and Financial Development on Economic Growth in India

Authors

  • Dheerajkumar Shet

Abstract

Economic growth represented by the GDP growth rate is the prominent indicator of progress
made by a country. This paper tries to study the effect of Interest Rate, Inflation and Financial
Development, here represented by Bank Credit on the GDP growth rate of India by developing a model
with the help of Multiple Regression Analysis. The final Regression model with a R square of 0.28
and Adjusted R square of 0.23 indicates that Interest Rate and Financial Development represented by
Bank Credit has a substantial effect on GDP growth rate where as Inflation has no prominent bearing
on the GDP growth rate.

Published

2020-11-01

Issue

Section

Articles