The credit GDP ratio in India has shown a steady rising trend since 2001 as a result of which the credit gap has been generally positive and increasing during 2001–2011. However, output gap during the same period has alternated between positive and negative depending on the state of the economy.
This suggests that the positive credit gap at times was co-synchronous with negative output gap. While negative output gap would suggest that the economy was in a downswing requiring expansionary monetary policy, positive credit gap trending upwards would, in a mechanical sense suggest application of capital buffers.