An impact of Merchandise Trade on GDP and Inflation: A Case Study of India

In this paper Endeavour’s to selectively present the impact of exports on India’s GDP by purchasing power, imports and consumer price index from 1990-2016 (26 years). The present study analyses the various research methodology like correlation, multiple regreesion, growth rate and ratio of GDP’s export and import, to find out the relationship of dependent (exports) and independent variables (imports, GDP and CPI). Thus it may concluded that the relation between export, import and GDP is positive highly correlated, while CPI is weak correlated. The t-test of import and GDP is significant association exists between them, but CPI is negative. Lastly, the share of import exceed than export in total GDP, which means government should adopt certain measures to boost the export.