Article
The Impact of the Money Supply on Economic Growth In India
The money supply plays a vital role in influencing the economic growth of a country by affecting investment, consumption, inflation, and overall financial stability. This study examines the impact of money supply on economic growth in India with reference to key monetary aggregates and macroeconomic indicators. The research focuses on analyzing the relationship between money supply and Gross Domestic Product (GDP) growth, considering the role of the Reserve Bank of India (RBI) in regulating monetary policy. Secondary data collected from RBI reports, government publications, and economic surveys have been used for the study. The analysis highlights how changes in money supply influence interest rates, liquidity, inflation, and economic activities in different sectors of the Indian economy. The study finds that an adequate and well-managed money supply contributes positively to economic growth by encouraging investment and production, while excessive money supply may lead to inflationary pressures. The research concludes that effective monetary policy and balanced control of money supply are essential for achieving sustainable economic growth and maintaining economic stability in India.
Full Text Attachment
