Hindu rate of growth
The Hindu rate of growth is a derogatory term referring to the low annual growth rate of the socialist economy of India before the liberalizations of 1991, which stagnated around 3.5% from 1950s to 1980s, while per capita income growth averaged 1.3%.
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. The later economists attribute the rate to the Government of India's protectionist and interventionist policies (see Licence Raj), rather than to a specific religion or to the attitude of the adherents of a particular religion.
The term contrasts with South Korea's Miracle on the Han River and the Taiwan Miracle. While these Asian Tigers had similar income level as India in the 1950s, exponential economic growth since then has transformed them into developed countries today.
The economy of India has been growing at rate of around 6-8% since economic liberalisation began in the 1990s.
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 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.
As noted politician and journalist Arun Shourie has pointed out (see quote below), 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
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.
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 larger than India's
- By 1990, South Korean per capita income was 20 times larger.
- Redefining The Hindu Rate Of Growth. The Financial Express
- Indian Economy: Dutt & Sundaram
- Tripathi, Salil (June 13, 2006). "Escaping the 'Hindu rate of growth'". The Guardian (London). Retrieved May 4, 2010.
- Meghnad Desai (2003). "India and China: An essay in comparative political economy". IMF.
- "Industry passing through phase of transition". The Tribune India.
- "India: the economy". BBC. February 12, 1998.