An Empirical Study Of Relation Between Inflation And Economic Growth In India

The study attempts to empirically examine the relationship between WPI measure of inflation and economic growth in India, measured as gross domestic product (GDP) between the years 2000-01 and 2013-14. Relying on the trend analysis and Ordinary Least Squares (OLS) regression technique, the study examines the impact of GDP on wholesale price index (WPI). The result shows that coefficient of GDP is positive but statistically insignificant. The paper therefore recommends the need for expeditious implementation of the suggestions by Dr. Urijt Patel Committee and manage inflation in order to sustain economic growth.