The Political-Economy of India…

International Journal of Economics and Management Studies

© 2019 by SSRG - IJEMS Journal

Volume 6 Issue 12

Year of Publication : 2019

Authors : Shaleen Nath Tripathi, Anubhav Nath Tripathi

10.14445/23939125/IJEMS-V6I12P107

How to Cite?

Shaleen Nath Tripathi, Anubhav Nath Tripathi, "The Political-Economy of India…," SSRG International Journal of Economics and Management Studies, vol. 6,  no. 12, pp. 59-68, 2019. Crossref, https://doi.org/10.14445/23939125/IJEMS-V6I12P107

Abstract:

Inflation reduces the value of capital. Although the Indian-economy is growing fastest among the major world economies, its current growth rate is lower than its peak performance after the global financial crisis of 2008 when the economy received fiscal and monetary policy stimuli by the policy-makers which kicked-off the growth-rate in the following years. However, the inflation–rate also soared to double-digits which the central banks tamed by tightening money-supply and increasing interest rate and the government also curbed its expenditure in the wake. Nonetheless, the previous UPA government continued the stimulus longer that pushed inflation to intolerable heights when INDIA is still a developing economy with various types of
constraints over investment and supply. The last decade of the country’s growth path shows that the economy is responsive to increase in money-supply, either by monetary-policy or fiscal policy, but in a supplyconstrained scenario the economy easily starts overheating or inflating.

Keywords:

Political, Indian-economy, world economies

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