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INTERNATIONAL JOURNAL OF CREATIVE RESEARCH THOUGHTS - IJCRT (IJCRT.ORG)

International Peer Reviewed & Refereed Journals, Open Access Journal

IJCRT Peer-Reviewed (Refereed) Journal as Per New UGC Rules.

ISSN Approved Journal No: 2320-2882 | Impact factor: 7.97 | ESTD Year: 2013

Call For Paper - Volume 14 | Issue 8 | Month- August 2026

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  Published Paper Details:

  Paper Title

"THE RELATIONSHIP BETWEEN GDP GROWTH AND FISCAL DEFICIT IN INDIA: AN EMPIRICAL ANALYSIS"

  Authors

  Dr. Vijay Singh Negi

  Keywords

GDP growth, Fiscal deficit, Short-run dynamics, Long-run dynamics, Inflation, Exchange rate, Foreign direct investment, India.

  Abstract


study uses data from the period of 2010-2020. The results suggest that there is a negative relationship between GDP growth and fiscal deficit in the short run, indicating that an increase in fiscal deficit leads to a decrease in GDP growth in the same period. However, in the long run, the relationship is not significant, suggesting that fiscal deficit does not have a significant impact on the GDP growth of India. The study also explores the impact of other macroeconomic variables on the relationship between GDP growth and fiscal deficit. The results show that inflation has a negative impact on the relationship in the short run, indicating that an increase in inflation leads to a decrease in GDP growth in the same period when fiscal deficit is high. However, in the long run, inflation does not have a significant impact on the relationship. The study also finds that exchange rate depreciation has a negative impact on the relationship in the short run, while foreign direct investment has a positive impact on the relationship in the long run. Overall, the study provides useful insights into the relationship between GDP growth and fiscal deficit in India. The findings suggest that policymakers should be cautious when managing fiscal deficit as it may have a negative impact on GDP growth in the short run. However, in the long run, the relationship between the two variables is not significant, indicating that other factors such as inflation, exchange rate, and foreign direct investment are more important in driving economic growth in India.

  IJCRT's Publication Details

  Unique Identification Number - IJCRT1135042

  Paper ID - 234900

  Page Number(s) - 263-269

  Pubished in - Volume 6 | Issue 2 | April 2018

  DOI (Digital Object Identifier) -   

  Publisher Name - IJCRT | www.ijcrt.org | ISSN : 2320-2882

  E-ISSN Number - 2320-2882

  Cite this article

  Dr. Vijay Singh Negi,   ""THE RELATIONSHIP BETWEEN GDP GROWTH AND FISCAL DEFICIT IN INDIA: AN EMPIRICAL ANALYSIS"", International Journal of Creative Research Thoughts (IJCRT), ISSN:2320-2882, Volume.6, Issue 2, pp.263-269, April 2018, Available at :http://www.ijcrt.org/papers/IJCRT1135042.pdf

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Call For Paper August 2026
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ISSN and 7.97 Impact Factor Details


ISSN
ISSN
ISSN: 2320-2882
Impact Factor: 7.97 and ISSN APPROVED
Journal Starting Year (ESTD) : 2013
ISSN
ISSN and 7.97 Impact Factor Details


ISSN
ISSN
ISSN: 2320-2882
Impact Factor: 7.97 and ISSN APPROVED
Journal Starting Year (ESTD) : 2013
ISSN
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