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.
- 3.5
- John Maynard Keynes
- Rules
- 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.