The article investigates the relationship between economic growth and defence expenditure in India from 1970–1971 to 2015–2016. By using the Autoregressive Distributed Lag and Toda-Yamamoto Granger Causality approach, the empirical results find that defence expenditure has a positive and significant impact on economic growth in India. The study also finds that capital defence expenditure has a positive and significant effect on economic growth, while revenue defence expenditure does not have any substantial influence on it. The causality test confirms a bidirectional causality between defence expenditure and economic growth, while it finds a unidirectional causality that runs from capital defence expenditure to economic growth. The study suggests that defence spending, especially capital defence spending, should be encouraged to enhance economic growth in the Indian economy. JEL Classification: H56, O40, C32

中文翻译：

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国防开支及其构成是否会影响印度的经济增长？

本文调查了1970–1971年至2015–2016年印度经济增长与国防支出之间的关系。通过使用自回归分布滞后和Toda-Yamamoto Granger因果关系法，经验结果发现，国防支出对印度的经济增长具有积极而显着的影响。研究还发现，资本防卫支出对经济增长具有积极而显着的影响，而收入防卫支出对其却没有任何实质性影响。因果关系检验确认了国防支出与经济增长之间的双向因果关系，同时发现了从资本国防支出到经济增长的单向因果关系。研究表明，国防支出，特别是资本国防支出，应鼓励在印度经济中促进经济增长。JEL分类：H56，O40，C32