Impact of Soaring Prices on Indian Growth (India's inflationary gap situation and its impact on GDP)

Abstract

The recent escalation in inflation worldwide took many by surprise. As per the Standard economic concept inflation will get out of parameter under a constant mix of certain monetary and fiscal policies, but whether continuous inflation will be a plentiful shockwave to the economy and its influence on GDP due to soaring prices will impact the Indian Growth. One and all feel the surge when inflation is on the escalation and so the trauma on central banks to embark as the regulator on inflation rates has matured exponentially at present time. The study emphasizes analyzing the interconnectivity concerning the rate of inflationary pressure and the economic growth rate of India. The research question on that this study is what the verge inflation rate for India. The outcomes of the research recommend that there is one inflationary threshold price that exists for India. The indication intensely backings the observation that the relationship between rising inflation rates will decrease the economic growth and surely enhance economic suffering in India.