economics medium Fill in the Blank

The term 'Hindu Rate of Growth', coined by Professor Raj Krishna, was used to describe the slow and unimpressive annual growth rate of the Indian economy, which hovered around ___% during the pre-1980s era.

  1. 3.5
  2. John Maynard Keynes
  3. Rules
  4. Net Factor Income from Abroad (NFIA)

Answer: 3.5

The 'Hindu Rate of Growth' referred to the sluggish 3.5% average annual GDP growth India experienced from the 1950s to the 1980s. Because the population was growing at roughly 2% per year, the per capita income growth was a mere 1.5%. The term was used critically to highlight the failure of the highly regulated, state-controlled 'License Raj' to generate rapid economic prosperity.

Topic Indian Economy - History
Exam Relevance UPSC Prelims, SSC CGL
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