Journal Press India^®

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Balance of trade is an important component to measure the relative strength of the country’s economy. Therefore, the proper management of exports and imports is an important issue for a country as it affects Balance of Payments. The objective of this study is to analysis the impact of exports, imports, real exchange rate and consumer price index on GDP. The result of Ordinary Least Square (OLS) indicates that a positive relationship exists between GDP and exports. Similarly, CPI has a significant positive impact on GDP. However, a negative relationship exists between GDP and imports. Likewise, real exchange rate also negatively impacts GDP. The results of the study would help the policymakers in understanding how much these independent variables are responsible for affecting the economic growth in India.

Keywords

Exports; Imports; Exchange rate; Consumer price index; Gross domestic product; Ordinary least squares

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