Hindu rate of growth
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Economic growth
In economics, economic growth is defined as the increasing capacity of the economy to satisfy the wants of goods and services of the members of society. Economic growth is enabled by increases in productivity, which lowers the inputs for a given amount of output. Lowered costs increase demand...
of the socialist economy of India
Economy of India
The Economy of India is the ninth largest in the world by nominal GDP and the fourth largest by purchasing power parity . The country is a part of the G-20 major economies and the BRICS, in addition to being partners of the ASEAN. India has a per capita GDP of $3,608 as per 2010 figures, making it...
before 1991, which stagnated around 3.5% from 1950s to 1980s, while per capita income growth averaged 1.3%.
Some argue that the slow Indian growth rate is better attributable to the Government of India's protectionist and interventionist policies (see Licence Raj
Licence Raj
Licence Raj, the Permit Raj, refers to the elaborate licenses, regulations and accompanying red tape that were required to set up and run businesses in India between 1947 and 1990....
) rather than to a specific religion or to the attitude of the adherents of a particular religion.
The term contrasts with South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
's Miracle on the Han River
Miracle on the Han River
Miracle on the Han River refers to South Korea's highly accelerated export-fueled economic growth, including rapid industrialization, technological achievement, education boom, exponential rise in living standards, rapid urbanization, skyscraper boom, modernization, successful hosting of the 1988...
and the Taiwan Miracle
Taiwan Miracle
The Taiwan Miracle or Taiwan Economic Miracle refers to the rapid industrialization and economic growth of Taiwan during the latter half of the twentieth century...
. 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.
Term
The term was coined by IndiaIndia
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
n economist
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
Raj Krishna
Raj Krishna
Raj Krishna was an Indian economist who taught at the Delhi School of Economics. He is most famous for the phrase "Hindu rate of growth" which he coined for India's low rate of GDP growth between the 50s and 80s.-Further reading:...
It suggests that the low growth rate of India, a country with a high Hindu
Hindu
Hindu refers to an identity associated with the philosophical, religious and cultural systems that are indigenous to the Indian subcontinent. As used in the Constitution of India, the word "Hindu" is also attributed to all persons professing any Indian religion...
population was in a sharp contrast to high growth rates in other Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
n countries, especially the East Asian Tigers
East Asian Tigers
The Four Asian Tigers or Asian Dragons is a term used in reference to the highly developed economies of Hong Kong, Singapore, South Korea and Taiwan. These nations and areas were notable for maintaining exceptionally high growth rates and rapid industrialization between the early 1960s and 1990s...
, which were also newly independent. This meaning of the term, popularised by Robert McNamara
Robert McNamara
Robert Strange McNamara was an American business executive and the eighth Secretary of Defense, serving under Presidents John F. Kennedy and Lyndon B. Johnson from 1961 to 1968, during which time he played a large role in escalating the United States involvement in the Vietnam War...
, was used disparagingly and has connotations that refer to the supposed Hindu outlook of fatalism
Fatalism
Fatalism is a philosophical doctrine emphasizing the subjugation of all events or actions to fate.Fatalism generally refers to several of the following ideas:...
and contentedness.
As noted politician and journalist Arun Shourie
Arun Shourie
Arun Shourie is an Indian journalist, author, intellectual and politician. He has been an economist with the World Bank , a consultant to the Planning Commission, India, editor of the Indian Express and Times of India and a minister in the government of India . He was awarded the Ramon Magsaysay...
has pointed out (see quote below), the so called Socialist rate of growth was a result of socialist policies implemented by staunch secular governments and had nothing to do with Hinduism
Hinduism
Hinduism is the predominant and indigenous religious tradition of the Indian Subcontinent. Hinduism is known to its followers as , amongst many other expressions...
.
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.India's growth rate was low by standards of developing countries. At the same time, Pakistan
Pakistan
Pakistan , officially the Islamic Republic of Pakistan is a sovereign state in South Asia. It has a coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by Afghanistan and Iran in the west, India in the east and China in the far northeast. In the north, Tajikistan...
grew by 5%, Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...
by 6%, Thailand
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...
by 7%, Taiwan
Taiwan
Taiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...
by 8% and South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
by 9%.
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.
See also
- Economic liberalization in IndiaEconomic liberalization in IndiaThe economic liberalization in India refers to ongoing economic reforms in India that started on 24 July 1991. After Independence in 1947, India adhered to socialist policies. In the 1980s, Prime Minister P. V. Narasimha Rao initiated some reforms...
- Licence RajLicence RajLicence Raj, the Permit Raj, refers to the elaborate licenses, regulations and accompanying red tape that were required to set up and run businesses in India between 1947 and 1990....
- Poverty in IndiaPoverty in IndiaPoverty is widespread in India, with the nation estimated to have a third of the world's poor. According to a 2005 World Bank estimate, 41.6% of the total Indian population falls below the international poverty line of 1.25 a day...
- Economic history of IndiaEconomic history of IndiaThe known Economic history of India begins with the Indus Valley civilization. The Indus civilization's economy appears to have depended significantly on trade, which was facilitated by advances in transport. Around 600 BC, the Mahajanapadas minted punch-marked silver coins. The period was marked...
External links
- The power of ideas, The Hindu Business Line, June 10, 2004
- Hindu rate of growth - An explanation by Meghnad Desai