Authors : Dr. Fakhruddin Rahi; Dr. Md. Moazzam Nazri

Volume/Issue : Volume 11 - 2026, Issue 9 - September

Google Scholar : https://tinyurl.com/32y2enud

DOI : https://doi.org/10.38124/ijisrt/26sep1310

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Abstract : In recent times, when India is moving towards growth but due to inflation, this growth may be reduced. Recently, World Bank cut off India’s growth rate in the third quarter, due to the high inflation rate which reduced the money value in the international market. Many researchers predict that it has positive relation in the short-run only. But it is not fruitful for long-run economic growth. This study investigates whether a country's growth will be impacted favourably or unfavourably by its inflation rate. Annual data is taken from the government’s official sites after that ADF (Augmented Dickey fuller test), PP Unit root test (Phillips Perron Test) is used for identify whether the data is stationary or non-stationary. Following analysis, the co-integration and Vector Error Correction (VEC) model is used to illustrate how inflation and economic growth are related over the long-run.

Keywords : GDP, Co-Integration, Economic Expansion, and Inflation.

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