Hindu rate of growth
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Hindu rate of growth is a controversial and derogatory expression[citation needed] used to refer to the low annual growth rate of the economy of India before 1991, which stagnated around 3.5% from 1950s to 1980s, while per capita income averaged 1.3%.[1]
The slow India growth rate is better attributable to India's socialist policies (sarcastically called Licence Raj) rather than to a specific religion or to the attitude of the adherents of a particular religion.
The economy of India has been growing at rate of around 6-8% since the economic liberalization begun in the 1990s. The reforms have been gradual, which was dubbed as the Hindu rate of reform in a paper by John Williamson and Roberto Zagha.[2]
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[edit] Term
The term was coined by Indian economist Raj Krishna.
It suggests that the low growth rate of India, a country with a high Hindu population was in a sharp contrast to high growth rates in other non-Hindu Asian countries, especially the East Asian Tigers, which were also newly independent. This meaning of the term, popularised by Robert McNamara, was used disparagingly and has connotations that refer to the supposed Hindu outlook of fatalism and contentedness[citation needed].
As noted journalist Arun Shourie has pointed (see quote below) out the so called Hindu rate of growth was a result of socialist policies implemented by staunch secular governments and had nothing to do with Hinduism.
because of those very socialist policies that their kind had swallowed and imposed on the country, our growth was held down to 3-4 per cent, it was dubbed — with much glee — as ‘the Hindu rate of growth’.
—Arun Shourie[3]
[edit] Comparison
In 1947, the average annual income in India was $439, compared with $619 for China, $770 for South Korea, and $936 for Taiwan. By 1999, the numbers were $1,818; $3,259; $13,317; and $15,720.[4]
India's growth rate was low by standards of developing countries. At the same time, Pakistan grew by 5%, Indonesia by 6%, Thailand by 7%, Taiwan by 8% and South Korea by 9%.[5]
The comparison with South Korea was stark:
- In 1947, South Korean per capita income was less than 2 times bigger than India's.
- By 1960, South Korean per capita income was 4 times bigger than India's
- By 1990, South Korean per capita income was 20 times larger.[6]
[edit] References
- ^ Redefining The Hindu Rate Of Growth. The Financial Express
- ^ John Williamson and Roberto Zagha (2002). "From the Hindu Rate of Growth to the Hindu Rate of Reform". http://scid.stanford.edu/pdf/credpr144.pdf.
- ^ [1]
- ^ Meghnad Desai (2003). "India and China: An essay in comparative political economy". IMF. http://www.imf.org/external/np/apd/seminars/2003/newdelhi/desai.pdf.
- ^ "Industry passing through phase of transition". The Tribune India. http://www.tribuneindia.com/50yrs/kapur.htm.
- ^ "India: the economy". BBC. 1998. http://news.bbc.co.uk/2/hi/south_asia/55427.stm.
