What Is Hindu Rate Of Growth?
Former Reserve Bank of India (RBI) governor Raghuram Rajan recently said India was “dangerously close” to the ‘Hindu rate of growth’.
- Hindu Rate of Growth is a term describing low Indian economic growth rates from the 1950s to the 1980s, which averaged around 4%.
- The term was coined by the late economist Raj Krishna in 1978 to describe the slow growth in the country.
- A former lecturer at the Delhi School of Economics (DSE), Krishna noted that only if the rate of growth is persistently slow and accompanied by low per-capita GDP, then it will be known as Hindu rate of growth but it has to factor in population growth as well.
- GDP is the final value of the goods and services produced within the geographic boundaries of a country during a specified period of time, normally a year.
- The GDP growth rate is an important indicator of the economic performance of a country.
- It can be measured by three methods, namely, Output Method, Expenditure Method, and Income Method