The main objective of the study is to investigate the relationship between macroeconomic variables and economic growth in India. This study has used the macroeconomic data from the world bank’s database over 40 years from 1978 to 2018. This paper has employed correlation coefficient and multiple linear regression models to analyze the relationship among seven macroeconomic variables GDP growth rate, Final consumption expenditure, Gross savings, real interest rate, foreign direct investment inflow, foreign direct investment outflow, and inflation. The result of the correlation coefficient establishes a negative and insignificant association between GDP growth rate and inflation. However, final consumption expenditure, gross savings, real interest rate, foreign direct investment inflow, foreign direct investment outflow, are positively associated with economic growth. The regression analysis results indicate that all the variables used in the study have demonstrated a significant impact on the GDP growth rate of India. Therefore, this study concludes that among all the variables studied in the study, final consumption expenditure is a key driver of India’s economic growth.
Impact Factor
2022: 6.012
This work is licensed under a