Warning regarding Hindu rate of growth?

Former governor of reserve bank of india (RBI) raghuram Rajan has issued a warning regarding Hindu rate of growth. Given the lack of private sector investment, high interest rates and slowing global growth, he has said that india has come very close to the low-growth 'Hindu growth rate'. The growth rate of the indian economy was at a low level of 4 percent from the 1950s to the 1980s, which is also known as the Hindu rate of growth.

The name 'Hindu rate of growth' was given by indian economist raj krishna in 1978 for slow growth. According to Rajan, the national income estimates released by the National Statistics office (NSO) last month indicate a gradual moderation in quarterly growth, which is a matter of concern. 

The NSO reports that after increasing by 6.3% in the second quarter (July-September) and 13.2% in the first quarter, the gross domestic product (GDP) growth rate dropped to 4.4% in the third quarter of the current financial year (April-June). In the third quarter of the previous fiscal year, increase was 5.2%.

"Optimists will undoubtedly discuss the improvement in the prior GDP numbers, but I am concerned about the gradual softening," the former governor said. The private sector is not eager to spend, the RBI is raising interest rates, and future forecasts predict a further slowdown in global growth. I am uncertain as to how the development will resume in such a circumstance.

On a question asked about India's growth rate in the coming financial year (2023-24), the former RBI governor said, "Even five per cent growth can be achieved. So it will be our luck. The October-December GDP figures suggest that growth will weaken in the first half of the year.

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