Context: Recently, former RBI Governor ,Raghuram Rajan claimed that India is ‘dangerously close’ to the Hindu rate of growth.
About Hindu growth rate :
- 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 ‘Hindu rate of growth’ was coined by Professor Rajkrishna, an Indian economist, in 1978 to characterize the slow growth and to explain it against the backdrop of socialistic economic policies.
- The term came into being to show India’s contentment with the low growth rate, post-independence.
- The word “Hindu” in the term was used by some early economists to imply that the Hindu outlook of fatalism and contentedness was responsible for the slow growth.
- Many economists believed that the so-called Hindu rate of growth was a result of socialist policies implemented by the then-staunch secular governments and had nothing to do with Hinduism.
- A small growth rate alone does not characterize the Hindu rate of growth.
- A prolonged low growth rate, albeit not an economic contraction, is not sufficient to be deemed as the Hindu rate of growth.
- In addition to growth being low and extending over a long period of time, the term also captures a low per-capita GDP, by factoring in the population growth.
Source: THE HINDU
Previous Year Questions
Q.1) With reference to Non-Fungible Tokens (NFTs), consider the following statements: (2022)
- They enable the digital representation of physical assets.
- They are unique cryptographic tokens that exist on a blockchain.
- They can be traded or exchanged at equivalency and therefore can be used as a medium transaction. of commercial
Which of the statements given above is correct?
- 1 and 2 only
- 2 and 3 only
- c) 1 and 3 only
- 1, 2 and 3
Q.2) The money multiplier in an economy increases with which one of the following? (2021)
- Increase in the Cash Reserve Ratio in the banks.
- Increase in the Statutory Liquidity Ratio in the banks
- Increase in the banking habit of the people
- Increase in the population of the country
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