NEW DELHI: Sounding a note of caution, former Reserve Bank Governor Raghuram Rajan has said that India is “dangerously close” to the Hindu rate of growth in view of subdued private sector investment, high interest rates and slowing global growth.
Rajan said that sequential slowdown in the quarterly growth, as revealed by the latest estimate of national income released by the National Statistical Office (NSO) last month, was worrying.
Hindu rate of growth is a term describing low Indian economic growth rates from the 1950s to the 1980s, which averaged around 4 per cent. The term was coined by Raj Krishna, an Indian economist, in 1978 to describe the slow growth.
The Gross Domestic Product (GDP) in the third quarter (October-December) of the current fiscal slowed to 4.4 per cent from 6.3 per cent in the second quarter (July-September) and 13.2 per cent in the first quarter (April-June).
The growth in the third quarter of the previous financial year was 5.2 per cent. “Of course, the optimists will point to the upward revisions in past GDP numbers, but I am worried about the sequential slowdown. With the private sector unwilling to invest, the RBI still hiking rates, and global growth likely to slow later in the year, I am not sure where we find additional growth momentum,” Rajan said in an email interview to PTI.
Recently, Chief Economic Advisor V Anantha Nageswaran had attributed the subdued quarterly growth to the upward revision of estimates of national income for the past years.
This story is from the March 06, 2023 edition of Millennium Post Delhi.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the March 06, 2023 edition of Millennium Post Delhi.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
India women's team suffers shock 0-5 defeat to Argentina in Hockey
India suffered a humiliating 0-5 defeat to Argentina to begin their European leg of the FIH Women's Pro League campaign on a disappointing note here on Wednesday.
Rajasthan end RCB's remarkable run in IPL with four-wicket win
Rajasthan Royals ended Royal Challengers Bengaluru's roller coaster run in the Indian Premier League with a scrappy fourwicket win in the Eliminator here on Wednesday.
Market cap of BSE-listed firms hit $5-trillion milestone at close
The combined market capitalisation of BSElisted companies hit the historic $5-trillion mark for the first time at the close of trade on Wednesday amid an optimistic trend in equities.
Petronet LNG posts highest-ever net profit in FY24; 20% rise in O4
Petronet LNG Ltd India's largest liquefied natural gas importer on Wednesday reported a 20 per cent rise in the March quarter net profit on the back of importing higher LNG volumes.
Adani Group mcap regains $200 bnmark as it rebuts coal invoicing charge
Apples-to-airport conglomerate gained Rs 56,250 cr in market capitalisation in last two trading sessions
Redefining possibilities
By breaking the cycle of poverty through providing holistic education and nurturing socio-emotional well-being, the Akanksha Foundation has been enabling students from underserved communities to lead empowered lives
Studies link stroke fatality rates with extreme temperatures and night-time heat
‘Night-time heat raises stroke risk by seven percent, especially affecting elderly and women’
JD(S) complains to police against Rahul Gandhi for claaming MP Prajwal raped 400 women’
The JD(S) on Wednesday complained to Karnataka DGP Alok Mohan against Congress leader Rahul Gandhi for allegedly claiming that Hassan MP Prajwal Revanna, who is facing charges of sexual abuse, has \"raped 400 women\".
SC says national security prime, revokes bail for PFI suspects
Accused ordered to surrender to NIA
Pune car crash: Father, pub staff remanded in custody
Following an outcry over quick bail, the Juvenile Justice Board (JJB) here on Wednesday remanded a 17-year-old youth allegedly involved in a car accident in Kalyani Nagar area of the city that claimed two lives to an observation home till June 5.