India close to “Hindu Rate of Growth”, says Raghuram Rajan
In an email interview with PTI, Raghuram Rajan mentioned how India is “dangerously close to our Hindu rate of growth!”
So, what does the ex-Reserve Bank of India Governor mean by the ‘Hindu Rate of Growth’? Let’s take a look.
The past year has not seen a phenomenal growth rate in India. The reason for this slowdown can be attributed to the current geopolitical situation, the effects of the pandemic, inflation, and more.
When highlighting the Indian GDP numbers, Rajan said in the interview- “At this point, the average annual growth of the Oct-Dec quarter relative to the similar pre-pandemic quarter 3 years ago is 3.7%. This is dangerously close to our old Hindu rate of growth! We must do better.”
The ‘Hindu rate of growth’ is a phrase that was coined by Raj Krishna, an economist who also taught at the Delhi School of Economics. The phrase refers to the period between 1950’s and 1980s, when India had gained Independence and struggled to achieve high growth rates.
These three decades in Indian history were marked by a GDP of around 3.% and per capita income growth was only around 1.3%.
Many have linked this low growth period to Hindu beliefs, and some feel that it was purely the socialist approach of Nehru that led to low growth.
Post the LPG reforms, India has seen good growth in its GDP (baring some years, such as 2008 during the recession).
Rajan also highlighted his worry on the “sequential slowdown.” He said that with private sectors unwilling to invest, and RBI hiking rates, finding growth momentum is difficult.
He concluded the interview by adding, “the only thing that can hold back India’s growth is politics.”
Reactions to this comment
The comment did not go well with the netizens, who called out Rajan for such a remark. Here are some of the reactions-
Raghuram Rajan is derisively calling Indian growth as Hindu rate of growth. Would he dare to call for all other countries that are growing lower than India or not growing at all as a Christian or Muslim rate of growth? Good that Modi got rid of Raghuram Rajan.
— D.Muthukrishnan (@dmuthuk) March 6, 2023
Read more: – Manish Sisodia Arrest: SC asks Delhi Deputy CM to go to the High Court for bail
He must disclose how he collaborated with P Chidambaram on ‘ease of business’ for Mauritius funds.”
Not surprising Raghuram Rajan has so much time to faff around peddling bunk. Doubt if serious academics at Chicago Univ and elsewhere have any time for this overrated pretender.
He must disclose how he collaborated with P Chidambaram on ‘ease of business’ for Mauritius funds. pic.twitter.com/12LesseDlq— Kanchan Gupta 🇮🇳 (@KanchanGupta) March 6, 2023
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