The role of Stock market in Economic Growth: Empirical Evidence from India

Abstract

: The study examines the relationship between the stock market and economic development in the Indian economy using monthly data from April 1993 to May 2017. The study used a vector error correction model to find a short- and long-run relationship between output and a number of stock market indices. We observed that the stock market has a positive impact on economic growth. As a result, the stock market must be enhanced more in order for the Indian economy to achieve higher economic growth