What is Hindu Growth Rate? | UPSC | One Young India
A thorough analysis of the Hindu rate of growth, its historical setting, and the most current issues brought up by former RBI Governor Raghuram Rajan
The Hindu Rate of Growth: Introduction
The sluggish economic growth rates India experienced, averaging approximately 4% from the 1950s through the 1980s, are known as the "Hindu rate of growth."
The phrase was first used in 1978 by Indian economist Professor Rajkrishna to describe India's slow economic growth and its relationship to the nation's socialist economic policy. Early economists attributed the slow growth to the fatalism and complacency of Hindu philosophy, while others said it was caused by the secular governments' policies rather than anything to do with Hinduism.
Concerns of Raghuram Rajan and the Current Economic Situation
Raghuram Rajan, a former governor of the RBI, recently expressed worry that India's growth rate is "dangerously close" to that of the Hindus. Given the historical context of the Hindu rate of growth and its consequences for the Indian economy, this statement emphasises potential hazards to the nation's economic development.
Analysing the current economic environment is crucial, taking into consideration variables like governmental regulations, world economic conditions, and the effects of recent occurrences like the COVID-19 epidemic. In addition to maintaining vigilance and taking the essential steps to ensure robust economic growth, it's important to avoid oversimplifying the issue by making direct comparisons to the past.
Important Information About Hindu Rate of Growth
Prolonged Low Growth: A sustained period of low economic growth, without an accompanying economic downturn, is referred to as the Hindu rate of growth. The Hindu rate of growth is characterised by this protracted era of slow growth and a low per-capita GDP.
Connection to Socialistic Economic Policies: Rather than being directly related to Hinduism, many economists contend that the Hindu pace of development was a result of the socialist policies enacted by secular governments at the time.
Hindu Rate of Growth Factor: The Hindu rate of growth also accounts for population increase, which has an impact on GDP per capita. A rapidly expanding population during this time further highlighted the low growth rate and its ramifications in the context of India.
For understanding India's economic trajectory and the obstacles it has faced, it is essential to comprehend the Hindu rate of growth and its historical background. The recent remarks by Raghuram Rajan serve as a timely reminder of the necessity of being watchful and proactive in promoting sustainable economic growth. India can avoid reverting to an extended period of low growth and keep moving towards prosperity by examining existing policies, factors affecting the global economy, and the specific issues it is currently facing.