Analysing the Asymmetric Transmission of Monetary Policy across Indian Economic Sectors

Author(s)	Prof. Bimal Jaiswal, Ms. Vanshita Mishra
Country	India
Abstract	The study focuses on examining the differential responses of the Interest-rate channel of monetary policy transmission (MPT) denoted by the Repo rate. Using the quarterly time series data from the time period 2012-2025, the analysis examines how the fluctuations in the repo rate influences the output of the different sectors of India spanning primary, secondary and service sector. The findings highlight heterogenous impact in the form that agricultural output showcases significant negative relationship with the repo rate changes but mining and quarrying shows insignificant results and remains insulated from the interest rate changes. The secondary sector and service sector both shows negative and significant relationship with the variation but the strength and magnitude of responses vary where the secondary sector emerged as the highly sensitive sector to the repo rate fluctuations. These asymmetric sectoral responses underscore the limitations of uniform monetary policy interventions and highlight the need for complementary sector-specific measures to achieve balanced growth alongside price stability.
Keywords	Monetary Policy Transmission, Repo Rate, sector-specific, Agriculture, Manufacturing.
Field	Sociology > Economics
Published In	Volume 7, Issue 5, September-October 2025
Published On	2025-10-29
DOI	https://doi.org/10.36948/ijfmr.2025.v07i05.58710

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