Hindu rate of growth

The term "Hindu rate of growth" was coined by the Indian economist Raj Krishna in 1978, and is often used by advocates of economic liberalisation. It refers to the annual growth rate of India's economy before the economic reforms of 1991, which averaged 4% from the 1950s to the 1980s. The earlier policies were dirigiste or centrally-planned, with heavy government involvement in the economy through indicative planning, state-directed investment, and the use of market instruments (taxes and subsidies) to incentivize market entities to fulfill state economic objectives. Modern neoliberal economists criticise the term, as they believe that the low growth rate was caused not by religious beliefs, but economic over-regulation. After the low economic growth produced by the five-year plan model and economic mismanagement, the Eighth Five Year Plan (1992 - 1997) managed a transition to a market-led economy. Economists critical of neoliberalism also criticized the term as oversimplifying the complex economic, political, and social factors that contribute to a country's rate of growth, as well as the use of GDP growth rate as a metric for progress.

The economy of India accelerated and has grown at a rate of around 6-7% since economic liberalisation began in the 1990s with the exception of 2020. Recent research has shown that India's growth rate had begun to attain higher growth since Indira Gandhi's time in 1980s due to economic reforms, with average growth rate of 5.8% in 1981 to 1991. GDP growth rate has however slowed since 2016. In March 2023, Raghuram Rajan said that the growth rate in recent times was dangerously close to India's old Hindu rate of growth.