Keywords : Inflation, GDP growth, India, economic policy, macroeconomic stability

Abstract : Inflation and GDP growth are two of the most critical indicators that reflect a country`s economic status. This paper explores the complex and evolving relationship between these variables, drawing on established theories and recent data. Focusing on emerging markets such as India, it highlights how varying inflation levels influence growth patterns, and vice versa. Evidence suggests that while mild inflation may stimulate economic activity, higher levels often restrict it. The paper also discusses the implications for economic policymaking, emphasizing the importance of maintaining inflation within a manageable range to ensure sustained development.

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