Trends in Money Supply

The longrun growth of money supply is shown in the following table. Even though these growth rates appear high by world standards, inflation in India has generally not been in double digits. 
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                M1      M3    Annual % Growth over Decade
   Year         (Rs.  bln)         M1        M3
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   1970-71      74     110         10        11
   1980-81     234     554         12        18
   1990-91     929    2658         15        17
   1994-95    1871    5265
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Growth in foreign exchange reserves has been the major source of M3 growth in the recent past.

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Centre for Monitoring Indian Economy, Bombay
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Last updated: May 1995.