India Back to "Hindu Growth Rate" in 2012?
The "Hindu rate of growth" is a derogatory description of the low annual growth rate of the pre-1991 Indian economy, which stagnated around 3.5% from 1950s to 1980s, while per capita income growth averaged 1.3%. In what appears to be an exaggeration, the Financial Times in its latest issue has an article titled "India’s abject return to talk of Hindu growth rates". Written by James Lamont, the FT story says that "India trails in terms of attracting foreign capital and beating inflation.... some economists and industrialists fear India’s economy could shrink back towards what was derisively called the “Hindu rate of growth” from initial projections of 9 to 7 per cent this year." With the India story unraveling due to big corruption scandals and governance deficit this year, the FDI fell by 28% , the second consecutive year of decline and the first such large decline since the opening up of the economy in 1991-92. As a result of this decline, the present l