In the first four decades after independence, i.e., from the 1950s to the 1980s, the Indian economy grew at a sluggish pace of approximately 3.50% to 4.00%. India adopted a state-directed, centrally planned economic model during this period. The fact that Jawaharlal Nehru, our first prime minister, was a socialist with a left-leaning outlook is well known. His idea of a developing country was based on a planned economy that ignored market dynamics and involved government intervention in business and international trade. This led to excessive regulation resulting in corruption and inefficiency, which slowed GDP growth.
However, Raj Krishna, an Indian economist, came up with a term to characterize this economic stagnation in 1978. ‘The Hindu Rate of Growth’ is what he called it. Unfortunately, neither Hinduism nor Indian culture had anything to do with the shortened growth rate. Surprisingly, this phrase became popular and is still remembered today, as former RBI Governor Raghuram Rajan recently warned that India is in danger of reverting to the "Hindu rate of growth." Stated differently, the phrase "the Hindu rate of growth" is used disparagingly to make fun of India's economic circumstances and damage the reputation of both, Hindus and Indian culture. Sadly, this term overlooked India's achievements in other fields such as self-reliance, industrialisation, and advancement in space technology during the first four decades after independence.
There are many countries around the world that had or have similarly low rates of GDP growth. However, it is notable that none of these countries, despite being predominantly Christian or Islamic, have labelled their periods of slow economic growth as a "Christian rate of growth" or an "Islamic rate of growth." This highlights a contrast in how economic stagnation has been associated with national or religious identity in the Indian context. The question arises as to why we Hindus are so apologetic about our own faith and culture that we coin a negative term and perpetuate its usage that is entirely removed from reality.
Growth rates have improved since 1991 when the Narsimha Rao-led coalition government overturned the previous restrictive socialist policies, demonstrating that socialist policies—rather than culture or religion—were to blame.
As a philosophy, Hinduism celebrates change, growth, and prosperity, despite what the term suggests. This is clearly seen in the nation's development since the Nehruvian planned economy model was abandoned, as well as in the advancement, wealth, and ascent of Indians globally. Our culture and traditions are reflected in the entrepreneurial spirit of our countrymen and their capacity to handle a variety of challenging circumstances. Many Indians have risen to leadership positions in Fortune 500 companies partly due to the inclusive values in India’s predominantly Hindu society. This cultural openness fosters an ability to engage sensitively with people from diverse backgrounds and helps them integrate smoothly into host countries.
In fact, if this term is to be used, it must be used in relation to the rates of economic growth in India over the past decade. The current stage of the Indian economy can rightfully be referred to as "The Hindu rate of growth" due to the impetus provided to the economy by the BJP, a Hindu nationalist party led by an RSS Pracharak.
It is now for us, the present generation, to use this term in a positive way by referring to the current rate of growth in our country as the “ TRUE HINDU RATE OF GROWTH.”
