Assessing the Impact of Governance on Economic Growth in India

The purpose of this study is to check how the governance indicators such as voice accountability, political stability, government effectiveness, and regulatory quality impact economic growth in India. The analysis uses secondary sources to collect data from 1996 to 2022. In order to examine the impact of governance on economic growth in India, the authors have employed the ARDL methodology, which is well suited to distinguish short-term and long-term effects. To ensure the study's reliability and robustness, it also includes stability tests, such as CUSUM and CUSUM Squares, and diagnostic tests, such as Wald and LM tests. The findings show the prevalence of a long-term relationship between governance indicators and economic growth. Most of the indicators have some impacts on short-term economic growth. By measuring these variables, researchers can assess the effectiveness of governance in bringing stability and prosperity to the country's economic conditions. The study identifies the areas in the general governance structure that require improvement to achieve stability. As a result, investors’ confidence in the economies of the countries will be boosted.