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Economic Growth And Credit In India, Charan Singh Ph.D., Subhash Bharadwaj Pemmaraju, Rohan Das

International Review of Business and Economics

The interdependence between credit expansion and economic growth has been a subject of some debate. While some economists contest that the development of the financial system is a byproduct of economic growth others assert that credit expansion is critical for growth itself. India’s impetus on expanding its banking reach and recent changes in the way transactions are being done begs the question whether such changes directly affect the growth trajectory. This paper aims to examine and understand the relationship between credit and growth in India in the last few decades. Different metrics for credit and output is used to test …