International Journal of Social Science Research (IJSSR)

An Enquiry Into india’s Fiscal Deficits Vis-a-Vis Money Supply And Rate of Interest Since Globalization

This study investigates the intricate relationship between fiscal deficits, money supply, and interest rates in India in the post-globalization era, spanning from 1991 to 2024. Utilizing a quantitative research approach and analyzing secondary data from credible sources such as the Reserve Bank of India, Ministry of Finance, and the World Bank, the study explores how fiscal and monetary policies have interacted to shape India's macroeconomic landscape. The findings reveal that fiscal deficits, while fluctuating in response to crises and reforms, have a moderate positive correlation with both money supply and interest rates, indicating their role in influencing liquidity and borrowing costs. Additionally, the analysis shows a steady growth in money supply alongside varying interest rate trends aligned with policy shifts. Inflation and GDP growth patterns further contextualize the economic environment, highlighting periods of stability, crisis, and recovery. This enquiry provides valuable insights into the fiscal-monetary dynamics of a rapidly evolving economy and underscores the need for coordinated policy measures to ensure macroeconomic stability and sustainable growth. Keywords: Fiscal Deficit, Money Supply, Rate of Interest, Economic Globalization, India.