Interrelation between Macro-Economic Variables and the Growth of Indian Economy

The paper examines how the macro-economic variables are significant to the contribution of growth of any economy. They influence the production of goods and services and the final value is known as Gross Domestic Product which is an indicator of the economic growth. The integrated contribution of variables enhance Gross Domestic product. The research aims to analyse the variables to find out the share of contribution to GDP( Gross Domestic Product) and investigate the scope for improvement for more impressive growth and accelerate the country’s development.The study considers the sectors of Indian economy- Primary , Secondary and Tertiary Sectors, Foreign Trade Policy, Fiscal and Monetary policies (Inflation, Unemployment, credit policy ) , Foreign Investment Policy , the role of Globalization and International Organizations such as WTO (world Trade Organization ), IMF( International Monetary Fund) , World Bank, etc. in the economic development. It was observed that foreign Direct Investment , export and service sector have contributed largely to the growth of GDP . The research finds the performances of the variables , the reasons for the poor growth and suggestionsfor improvement. The secondary data have been collected for the period of 2008-09 to 2017-18. ANOVA(F- test) was conducted at the Significance level of 0.05. The findings revealed that India needs inclusive growth to involve all the variables which can contribute comprehensively to the growth of GDP(Gross Domestic Product).

Keywords: Economic Development, FDI( Foreign Direct Investment), Fiscal Policy, GDP(Gross Domestic Product), Globalization, Inclusive Growth, Macroeconomic Variables.