• SHANTHA NAIK H

During the era of globalization, the exchange rate serves as a vital element influencing the economic growth of each nation. This research aims to investigate the effect of the exchange rate on India's economic growth from 1987 to 2023. Based on standard deviation analysis, it is noted that GDP growth demonstrates greater consistency compared to the exchange rate, interest rate, and inflation rate throughout the study period in India. The correlation coefficient of 0.313 suggests a positive yet insignificant correlation between the exchange rate and GDP growth. Conversely, the interest rate and inflation rate exert an inverse effect on India's economic growth during the same timeframe. The study reveals that both the exchange rate and interest rate have a negative but insignificant impact on India's economic growth, with values of β = -0.095 and t = -1.097 for the exchange rate, and β = -0.609 and t = -2.572 for the interest rate, respectively. However, it is observed that the inflation rate has a positive but insignificant effect on India's economic growth, indicated by β = 0.052 and t = 0.2314. Correlation analysis indicates a positive relationship, while multiple regression analysis reveals a negative relationship between the exchange rate and GDP growth in India during the study period.

Exchange Rate, Inflation Rate, Interest Rate, GDP

"THE IMPACT OF FOREIGN EXCHANGE RATE FLUCTUATIONS ON THE ECONOMIC GROWTH OF INDIA ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.10, Issue 8, page no.h727-h732, August-2023, Available :http://www.jetir.org/papers/JETIR2308790.pdf

"THE IMPACT OF FOREIGN EXCHANGE RATE FLUCTUATIONS ON THE ECONOMIC GROWTH OF INDIA ", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.10, Issue 8, page no. pph727-h732, August-2023, Available at : http://www.jetir.org/papers/JETIR2308790.pdf