BALANCED BANK CREDITS FOR BALANCED ECONOMIC GROWTH IN INDIA

Indian economy is based on three pillars such as agriculture sector, manufacturing sector and service sector. For the balanced economic growth in India, all the said sectors should grow simultaneously. Any imbalance in the Growth among the three sectors create problem for the economy in the form of inflation, import etc. Secondly, bank credits to business and economic growth rate are positively correlated (Suna Korkmaz, 20151 ; Rashmi Umesh Arora 8 ). By considering the above two cases the present study has given an effort to find out the degree of association that exist between bank credits to a particular sector and contribution of that particular sector to GDP. So that, by controlling bank credit to a particular sector, policy makers can control the whole economy for a balanced economic growth. The study found that, there is a very close relationship between bank credit to a sector and contribution of that sector to GDP in the entire three sectors. The study also found that, there is an imbalanced growth in Indian economy over the years. Service sector is growing faster than manufacturing and agriculture sector. Agriculture sector is growing slowly as compare to the other two sectors. There is a need and big opportunity in the economy to accelerate primary and secondary sectors through bank credit accelerator to bring the three sectors in to a common hide which is being neglected over the years in Indian economy. The study afraid and guess that, this might be the reason of present agrarian distress, inflation etc. in India. So the study has suggested that, bank credit can be used as an instrument to manipulate the growth of a particular sector to keep the economic imbalances under control.