Researcher & Asst. Prof, International School of Management Excellence (ISME), Bangalore
Conventional economic wisdom & age old practices to determine the cardinal factors have indicated in the past researches that GDP growth of any economy has certainly been a function of Current Account, Interest Rate, Gold Reserves, Government Spending & last but not the least its currency strength. This secondary study is based out of similar thought process on the part of the researcher to strike a relation between all these key components behind GDP growth of an important BRICS member India in a specified study period. This study is focussed to find the most relevant component among these key components. GDP components are in consideration over here, namely, Current Account Balance of India, Interest Rate set by the Central Bank i.e. RBI in India, Gold Reserves as specified by the Finance Ministry, Government Spending, as governed directly from PMO and the relative Currency strength in comparison with the benchmark Currency US Dollar. GDP growth is a very factor as far as the indicator of a country‘s growth is concerned. It shows the performance of the country as a whole; it signifies the impact of policies & governance; it shows the impact of import & export; it also points a clear indication towards the corporate scorecard. The higher the growth is the better it is for the economy. Again an important point to be noted here is India as an emerging economy & an integral part of the ever important new economic group “BRICS”, has more foreign investors, who are constantly monitoring their growth arte against their peers. This study will be throwing some light towards the key factor or factors for India, which in turn will be the important for the GDP growth.
