Impact of Macro Economic Determinants on Gross Domestic Product of Indian Economy

Gross Domestic Product commonly known as GDP and is a vital indicator to measure the total output or national income of an economy for any specific period. Worldwide, macroeconomic model through various economic variables has been used for drafting the economic policy to measure economic growth. The research paper tries to find out the relationship of various macroeconomic determinants that affect Gross Domestic Product in Indian Economy. The research paper used secondary data. The period of analysis is 2000-2001 to 2018-2019. Data was collected from the published sources like Reserve Bank of India Bulletins and Economic Survey of India. GDP is the dependent variable in the present paper and which was stated as a function of various independent macroeconomic variables such as Foreign Exchange Rate, Foreign Direct Investment, Inflation, Interest Rate, External Debts, and Merchandise trade. Correlation and Regression was used to investigate the relationship among various determinants of Gross Domestic Product. The purpose of this paper is to investigate the effects of macroeconomic determinants on the performance of the Gross Domestic Product in Indian Economy.