• Shilpa Mittal
• Dr. Meena

Indian economy has shown a robust growth rate in gross domestic product during 2004 to 2008 and same level of high growth rate have also recorded in key financial indicators of Indian economy. But this continuous increasing trend in growth rate got hindered by the North Atlantic financial crisis (NAFC) in the year 2008. However, the growth of Indian economy returns to normal level initially in response to large monetary and fiscal stimuli but the growth rate of Indian economy had slowed down significantly afterwards which result into a substantial widening of the current account and fiscal deficits during the period 2008-09. Inflation has also risen to an elevated level due to the crisis of 2008. India’s potential growth rate has decreased significantly due to the deterioration in rate of domestic saving and investment (Mishra, 2013, IMF, 2013). Furthermore, studies of Acharya, 2013, Tarapore, 2013, Mody and Walton, 2013, have shown indication in their research that due to large twin deficits, there is a possibility that India may face a balance of payments crisis in the upcoming years. The alarming situation arises during June-August 2013 following the mention of tapering by the US Federal Reserve from the accommodative monetary policy. The global and domestic financial markets have also shown concomitant volatility which is also an alarming situation for Indian economy. But since the second quarter of 2013-14, significant correction in the current account deficit (CAD) has taken place which leads to lesser these concerns regarding Indian economy up to some extent only. There is also a view that the high growth phase of 2004-09 was a debt-led cyclical boom which was supported by extraordinary capital inflows in the world economy, corresponding with an outstanding growth phase in the world economy (Nagaraj, 2013). Thus, the increasing trend of growth rate of economy during this period can be due to this reason also. Government of India, planning commission, economists, investors and even the foreign countries have a keen interest in knowing the macroeconomic performance of India. Just as the performance of a system depends upon the performance of its components similarly, the macro economic performance of a country depends upon the performance of its states. Ultimately the GDP is total of goods and services produced by the nation people who are living in different states of India. Therefore, it is essential to measure the macro performance of the state’s first, in order to have a deeper understanding and analysis of macroeconomic dynamics of a country as a whole. Macro-economic performance of a country can be improved at national level only when the financial performance at states level got improved. Thus, due to the importance of studying the Macro economic performance of Indian states, an attempt has been made through current study to measure the macroeconomic dynamics of the Indian states. It has been highlighted in the current study which states of India need to be focused for improving the overall macro-economic performance of India.

Macro-Economic Dynamics of Selected Indian States

"Macro-Economic Dynamics of Selected Indian States", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.6, Issue 12, page no.1564-1567, December-2019, Available :http://www.jetir.org/papers/JETIR1912205.pdf

"Macro-Economic Dynamics of Selected Indian States", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.6, Issue 12, page no. pp1564-1567, December-2019, Available at : http://www.jetir.org/papers/JETIR1912205.pdf