Inflation and Socio-Economic Development: A Study of India from the Period 1990 to 2015

The main purpose of this paper is to determine the proximity between inflation and GDP growth rates in India from the period 1990 to 2015. We use Granger Causality test, Augmented Dickey Fuller test and Ordinary Least Square method. Our result reveals that neither inflation leads to variation in GDPnor GDP create variation in inflation. Further, the results based on regression analysis, (we also check auto correlation in data), shows that inflation has insignificant impact on GDP and shows a negative proximity with GDP.