02022cas a2200301 a 4500 AALejournalIMF023121 230101c9999 xx r poo 0 0eng d 20.00 USD 9798400216404 1018-5941 BD-DhAAL BD-DhAAL MacDonald, Margaux. Financial Sector and Economic Growth in India / Margaux MacDonald, TengTeng Xu. Washington, D.C. : International Monetary Fund, 2022. 1 online resource (30 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students India's financial sector has faced many challenges in recent decades, with a large, negative, and persistent credit to GDP gap since 2012. We examine how cyclical financial conditions affect GDP growth using a growth-at-risk (GaR) approach and analyze the link between bank balance sheets, credit growth, and long-term growth using bank-level panel regressions for both public and private banks. We find that on a cyclical basis, a negative shock to credit or a rise in macro vulnerability all shift the distribution of growth to the left, with lower expected growth and higher negative tail risks; over the long term, the results indicate that higher credit growth, arising from better capitalized banks with lower NPLs, is associated with higher GDP growth. Mode of access: Internet Banks imf Depository Institutions imf Forecasting and Other Model Applications imf Micro Finance Institutions imf Xu, TengTeng. IMF Working Papers; Working Paper ; No. 2022/137 Full text available on IMF https://elibrary.imf.org/openurl?genre=journal&issn=1018-5941&volume=2022&issue=137 IMF e-Library