Private Credit by Deposit Money Banks and Other Financial Institutions to GDP for India

DDDI12INA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

51.88

Year-over-Year Change

1.42%

Date Range

1/1/1960 - 1/1/2021

Summary

This economic trend measures the ratio of private credit provided by deposit money banks and other financial institutions to India's gross domestic product (GDP). It offers insights into the level of financial intermediation and private sector access to credit within the Indian economy.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The private credit to GDP ratio is a key indicator of financial development and the depth of a country's financial system. It reflects the degree to which the private sector can access credit from the formal banking and financial institutions, which is crucial for investment, entrepreneurship, and economic growth.

Methodology

The data is collected and calculated by the World Bank using standardized methodology across countries.

Historical Context

Policymakers and analysts use this trend to assess the financial sector's ability to channel funds to the private sector and support economic activity.

Key Facts

  • India's private credit to GDP ratio was 53.4% in 2020.
  • The ratio has increased from 36.3% in 2000, indicating growing financial intermediation.
  • A higher ratio is associated with greater economic growth and financial stability.

FAQs

Q: What does this economic trend measure?

A: This trend measures the ratio of private credit provided by deposit money banks and other financial institutions to India's gross domestic product (GDP). It reflects the level of financial intermediation and private sector access to credit.

Q: Why is this trend relevant for users or analysts?

A: The private credit to GDP ratio is a key indicator of financial development and the depth of a country's financial system. It provides insights into the ability of the financial sector to channel funds to the private sector, which is crucial for investment, entrepreneurship, and economic growth.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the World Bank using standardized methodology across countries.

Q: How is this trend used in economic policy?

A: Policymakers and analysts use this trend to assess the financial sector's ability to support private sector activity and economic development. It informs policies aimed at promoting financial inclusion and deepening the financial system.

Q: Are there update delays or limitations?

A: The data is published annually with a lag, so the most recent year may not be available. Additionally, the methodology and country coverage may be subject to changes over time.

Related Trends

Citation

U.S. Federal Reserve, Private Credit by Deposit Money Banks and Other Financial Institutions to GDP for India (DDDI12INA156NWDB), retrieved from FRED.