Components of M3 growth in 1994-95, compared with the previous year are presented here. They show that the extremely high growth in foreign exchange reserves is an important factor in the current phase of high money growth. However, foreign capital inflows through GDRs in incremental deposits have shown a decline. Net bank credit to commerce has also registered an impressive growth.
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Component June 1995 Growth over a year ago
Level (Rs.bln) (%)
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Net bank credit to govt. 2348 8.1
Net bank credit to commerce 2870 21.0
Foreign Exchange Assets 727 22
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Overall M3 5337 16.6
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Centre for Monitoring Indian Economy, Bombay
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Last updated: August 1995.