Raghuram Rajan, a former governor of the Reserve Bank of India, expressed concern that India is on the brink of experiencing the 'Hindu rate of growth'. This term refers to India's slow economic growth rate, which is attributed to low levels of private-sector investment, high-interest rates, and a global economic slowdown. Economist Raj Krishna coined the term in 1978 to describe India's low GDP growth rate, which remained steady over several decades despite various crises and changes in government.
Raghuram Rajan made his statement following the release of a report by the National Statistical Office (NSO) last month, which revealed a decrease in the most recent projection of national income. India's GDP growth rate decreased to 4.4% during the third quarter (October-December) as compared to 6.3% in the preceding quarter (July-September).
What does the term "Hindu rate of growth" mean?
In 1978, economist Raj Krishna created the term "Hindu rate of growth" to describe the 4% GDP growth in India from the 1950s to the 1980s.
According to the book, "The New Oxford Companion to Economics in India," the term "Hindu Rate of Growth" was a polemical device used to highlight India's consistently low growth rate of 3.5% over an extended period. Economist Raj Krishna believed that this low growth rate was an intrinsic cultural phenomenon, as it remained constant despite changes in government, wars, famines, and other crises. This belief inspired the term's name.
Raj Krishna coined the term, and it is often considered a derogatory phrase that implies India's failure to reach its full economic potential, as stated in A Dictionary of Politics and International Relations in India
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