A Study on the Inter-relationship between Financial growth, Human Development with Economic Progress in India

Abstract

The paper establishes an interconnection between financial growth, human development and economic progress in India from 1990 to 2021. We utilized the financial and human development indexes to understand our country's growth better. The study implements a time series analysis to find out the growth perspective of the country. We have implemented the Unit root tests and
Cointegration tests to find out the stationarity of the variables, and we also implemented the Auto Regressive Distributed lag test to explore the relationship between the variables and how they complement each other in a short time span and over a long period of time. We used the causality test to predict the causal relationship among the variables. The study results depict that economic growth significantly contributes to both variables and has unidirectional causality. Based on the results, we will suggest a few policy implementations that can contribute to the development of society and enhance decisionmaking.