Did the Selected Economic Variables Impact the Inflation and GDP Growth of India During 1990–2016?

This research is carried out to focus mainly on examining the levels of connection and integration between the commodity markets and the economic growth factors of the India (GDP and Inflation). This investigation is attempted in order to improve the knowledge on markets ’spillover effects, especially in examining whether the financial markets and the economy demonstrate a different behavior during times of crisis and uncertainty, in the background of globalization.

In order to determine the effect, the analysis has been carried out to what happened in these markets during the Asian Financial Crisis in 1997, World Trade Center attack in 2001, Iraq war in 2003 and Global Financial Crisis in 2007–08. These time periods are considered because the world economies had experienced major shocks and were impacted adversely. This study has brought out the relationships between macro economic variables Gold Price, Crude Oil and US Dollar rates with GDP growth rate and Inflation rate.