SBI Research rejects Raghuram Rajan's statement

SBI Research rejects Raghuram Rajan's statement: The statement was called biased, former RBI governor had said- India has reached 'Hindu rate of growth'

Mar 7, 2023 - 22:12
SBI Research rejects Raghuram Rajan's statement

A report by State Bank of India (SBI) Research has termed former Reserve Bank of India (RBI) Governor Raghuram Rajan's statement regarding the 'Hindu rate of growth' as wrong. Not only this, but SBI Research has also called Raghuram Rajan's statement malicious, biased and immature.
The country's largest bank SBI said in its Ecowrap report that the quarterly growth of India's GDP in the financial year 2022-23 is showing a declining trend. Arguing on the basis of selected quarters that India is moving towards a 'Hindu rate of growth' (3.5-4.0%), based on investment and savings data, is completely wrong. Not only this, this statement is extremely malicious, biased and immature.
Expressing concern in an interview 2 days ago, Raghuram Rajan had said that the figures for GDP growth are indicating that the 'Hindu rate of growth' is coming very close. He blamed the decline in private investment, high-interest rates and slowing global growth for this.
Raghuram Rajan also said that the big question is how India's development will be in 2023-24. If we achieve a growth rate of 5%, we will be lucky.
According to statistics, the Gross Domestic Product (GDP) has come down to just 4.4% in the third quarter (October-December) of the current financial year. It was 6.3% in the second quarter (July-September) and 13.5% in the first quarter (April-June). Earlier this figure was 5.4% in the same period last year.
NSO has estimated the growth rate to be at 7% in the current financial year. The report has projected economic growth and decline in the next financial year. RBI is continuously increasing the interest rates one after the other. Amidst all this, the possibility of slowing down of global growth is also being expressed.
The term 'Hindu rate of growth' became popular in the 1970s. It has nothing to do with Hinduism. After independence from the British in 1947, the economic condition of India was very bad. Despite several steps taken by the government, the economy was not coming back on track. India's growth rate was very slow and it used to remain between 3.5 to 4.0%.
This slow growth rate between 1947-80 was named the 'Hindu rate of growth' by Indian economist and professor Raj Krishna. He used the term 'Hindu rate of growth' for the low-economic growth from the 50s to the 70s.
Raj Krishna had said that whatever may be done, our growth rate remains the same. He was very cheerful and said this in jest. However, to date, his term is being used.

Muskan Kumawat Journalist & Writer