📷 Image: Wikimedia Commons / Vyacheslav Argenberg
Business
Professor Warns: 19% Credit Growth vs 10% GDP Signals Inflation and Rupee Risk, Calls for RBI to Tighten Credit
✍️ NDTV Profit
🗓 02 Nov 2026, 05:17 AM
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A professor has highlighted the mismatch between 19% credit growth and 10% GDP, warning that rising inflation could threaten the rupee and urging the Reserve Bank of India to curb bank credit.
The professor pointed out that credit expansion at 19% this year is outpacing the 10% growth in the economy, a gap that could fuel inflation.
He warned that sustained inflationary pressure could erode the rupee’s value and create instability in financial markets.
In response, the professor urged the Reserve Bank of India to tighten credit conditions and implement measures to bring credit growth in line with GDP.
The call comes as market participants monitor RBI’s policy stance amid concerns over rising consumer prices and the currency’s recent volatility.
He warned that sustained inflationary pressure could erode the rupee’s value and create instability in financial markets.
In response, the professor urged the Reserve Bank of India to tighten credit conditions and implement measures to bring credit growth in line with GDP.
The call comes as market participants monitor RBI’s policy stance amid concerns over rising consumer prices and the currency’s recent volatility.