Explainer: What is ‘Hindu rate of growth’ and why Raghuram Rajan’s remarks may be ‘premature’

u00a0The phrase gained prominence due to the belief that India’s economy was growing at a rate that was insufficient to address the country’s burgeoning population and widespread poverty. The term Hindu in this context doesn’t pertain to religion but rather refers to a slow and steady growth pattern, which was perceived to be prevalent during India’s pre-liberalization era.Raghuram Rajan, a prominent economist and former Governor of the Reserve Bank of India, recently mentioned the term in the context of the current economic situation. He suggested that it might be premature to declare that the era of low growth is over for India. While acknowledging recent positive growth indicators, he cautioned against complacency, emphasizing the need for sustained reforms and policies to ensure higher and consistent growth.Source:- the printRajan’s remarks might be considered premature because while India has indeed experienced improved economic growth rates in recent times, sustaining this growth and addressing structural challenges require ongoing efforts. He implies that India should avoid premature celebration and instead focus on long-term economic reforms to ensure sustainable and inclusive growth.Source:- business standard
The term Hindu rate of growth and Rajan’s remarks underscore the importance of understanding historical economic context, as well as the need for continuous efforts to promote robust economic growth. They also reflect the cautious approach that economists take when analyzing complex economic dynamics, emphasizing the need for sustained and well-thought-out policies to ensure lasting progress.Share your views in the comments