In 1978, an Indian economist Professor Rajkrishna used the term The Hindu rate of growth to mark the slow growth rate. Soon the term became a way to define India’s low growth rate after independence. When the rest of the countries were striving for more economic growth, Indian resignation was seen as the main reason why the policymakers were not looking for ways in order to boost the economy.
The term was then used to define the annual low growth rate before the liberalization of the Indian economy in 1991. That time the growth rate deteriorated about 3.5% from the 1950s to the 80s and the per capita income growth was 1.3% average.
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The Hindu Rate Of Growth And Economic Development:
The Hindu Rate Of Growth More facts:
- The Hindu rate of growth was being compared with the Taiwan Miracle and Miracle on the Han River of South Korea. The Asian Tigers used to have the same income level as that of India back in the 1950s, however, their exponential economic growth since that time has changed them into developed countries at present.
- Several claims that the Indian economy accelerated and then grew at about 6% to 9% since the economic liberalization that started in the 1990s. But the study shows that the growth rate started growing in 1980.
- It is said that the word ‘Hindu’ in the stated term was used by Vikas Mishra, an economist. He wanted to indicate that the Hindu view of contentedness and passivity should be held accountable for the slow economic growth of the country.
What is GDP?
GDP or Gross Domestic Product is defined as the monetary value of all the goods and services produced in a country during a specific time period. The GDP of a country is like ts economic snapshot and it is used to measure the size of the country’s economy and its growth rate. GDP is calculated by using a country’s production, income, and expenditure.
What is sustainable growth?
Sustainable growth in terms of business is defined as the attainable growth that a business organization can achieve without any problems. The SGR or the sustainable growth rate is the highest rate of growth a company can sustain without increasing its financial leverage.
What is inclusive growth and how is it measured?
Inclusive growth is a theory that introduces impartial opportunities for economic participators during the economic growth with profits acquired by every sector of society. The description of inclusive growth signifies direct ties between the microeconomic and macroeconomic determinants of an economy and economic growth.
Inclusive growth is estimated by income growth rate and distributions which are adjusted by combining the GDP per capita and Gini coefficient of income inequality.
Study shows that structural changes and macroeconomic stability are the main reasons for attaining inclusive growth.
What is the inclusive growth policy of India?
Inclusive growth is like the economic growth that generates employment possibilities and assists in lessening poverty. It means that poor people will have access to fundamental services in education and health. It provides a vast number of opportunities and empowers people through skill development and education.
What is economic development? What are the four factors?
Economic development is defined as the growth of the standard of living of the people of a country or a change from a low-income economy to a high-income economy. When the quality of life in a country starts to improve economic development takes place as well.
Economic growth only happens when there is an increase in the quality of living and the amount of the factors of production. This basically consists of three main factors land, labor, and capital, and then lastly entrepreneurship.
‘A country is having a Hindu rate of growth’
The Hindu rate of growth is not characterized by just a slow growth rate. Additionally, the growth rate being slow and continuing for a long time period, the term also indicates a GDP with low per-capita by factoring in population growth of the country. For example, in the 1980s India’s yearly rate of population growth stood over 2% and the GDP per capita of 3.5%, was a little 1 % portraying the stated term.
We hope this would help you to understand the Hindu rate of growth. We also explained other terms related to economic growth for a better understanding.
