Understanding the 'Hindu Rate of Growth' Term

The question asks to identify the economist credited with coining the phrase 'Hindu Rate of Growth'. This term is notable in discussions about India's economic history, particularly the period following independence.

What is the 'Hindu Rate of Growth'?

The term 'Hindu Rate of Growth' was used to describe the relatively low annual growth rate of the Indian economy from the 1950s to the 1980s. During this period, the average GDP growth rate hovered around 3.5%, while the per capita income growth was even lower, around 1.3%. This slow pace of growth was often contrasted with the higher growth rates achieved by other developing nations during the same time.

It's important to understand that the term itself was coined to highlight economic stagnation and did not have any religious connotation regarding the Hindu faith. Instead, it was intended as a sociological observation about what was perceived as a fatalistic attitude towards economic progress, though the name itself has been subject to debate and criticism over time.

The Economist Behind the Term

The economist widely credited with coining the phrase 'Hindu Rate of Growth' is Raj Krishna. He was a prominent Indian economist who served in various capacities, including as a member of the Planning Commission.

Raj Krishna used this phrase to point out the persistently slow economic growth rate in India over several decades, suggesting that certain social and institutional factors might be contributing to this phenomenon.

Significance in Indian Economic History

The period characterized by the 'Hindu Rate of Growth' saw India pursuing a mixed economy model with significant state intervention, central planning, and protectionist trade policies. While these policies aimed at self-reliance and equitable distribution, critics argued they also stifled competition, innovation, and efficiency, leading to the slow growth rate.

Economists debated the reasons for this slow growth, attributing it to various factors including:

• High population growth offsetting GDP growth.
• Inefficient public sector enterprises.
• Regulatory hurdles and bureaucracy (often termed the 'License Raj').
• Lack of foreign investment.
• Inadequate infrastructure.

The economic reforms initiated in the early 1990s are often seen as a turning point, leading to a higher trajectory of economic growth, moving away from the era described by the 'Hindu Rate of Growth'.

Conclusion on the Coiner

Based on historical economic literature and consensus, Raj Krishna is the economist who coined the terminology 'Hindu Rate of Growth' to describe India's economic performance during a specific historical period.

Revision Table: Key Concepts

Additional Information: India's Economic Growth Context

The 'Hindu Rate of Growth' period was characterized by India's commitment to socialist-inspired planning. The First Five-Year Plan was launched in 1951, focusing on agriculture and infrastructure. Subsequent plans aimed at heavy industrialization and achieving self-sufficiency. While these efforts built a diversified industrial base, they were often criticized for being inefficient and not generating sufficient employment or reducing poverty significantly relative to the potential.

The slow growth meant that despite increasing industrial output, India lagged behind many East Asian economies that were experiencing rapid growth during the same decades. The term 'Hindu Rate of Growth' became a common, albeit controversial, way to refer to this economic reality before the liberalisation era changed the economic landscape of the country.