Journal Press India®

Impact of Monetary Policy on GDP of India

Vol 5, Issue 2, July - December 2018 | Pages: 16-29 | Research Paper  

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Author Details ( * ) denotes Corresponding author

1. * Om Prakash Agrawal, Assistant Professor, Institute of Business Management, GLA University, Mathura, Uttar Pradesh, India (
2. Prateek Kumar Bansal, Assistant Professor, Institute of Business Management, GLA University, Mathura, Uttar Pradesh, India (

Monetary policy is a measure which is decided by the Apex bank to regulate currency supply and credit control in the Indian economy where as gross domestic product (GDP) is an indicator of growth and development of the economy. Monetary policy and its components i.e. CRR, SLR, BR, RR, RRR and MSF (Marginal Standing Facility) have impact on the inflation, credit supply in market and GDP of the country. The purpose of this study is to examine the impact of various financial components of monetary policy on the GDP, which is an index of economic growth and development of the economy. It has been observed during the study that monetary policy of the nation has positive impact on the GDP by applying the various tools and techniques with the help of Econometrics. In this study, GDP is used as dependent variable while components of monetary policy are used as independent variable to examine the impact.


GDP; Monetary policy; Economic growth; Inflation; CRR

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