Key Points
With all of its engines only trundling along and not really hitting high gear, the Indian economy is set to see a new persistent Hindu rate of growth of 6.5 7 per cent, unless some painful reforms are carried out at the central and state levels...
The original Hindu rate of growth a term coined by the late economist Raj Krishna in 1978 was meant to capture the persistence of a low rate of growth accompanied by low per capita income..
At the time, that low rate of growth was pegged at around 3.5 4 per cent...
The reason why India is not likely to exceed this new Hindu rate is that each of its engines of growth consumption, investment, exports, and government expenditure are all running at their basic levels..
The manufacturing sector has grown over the last 10 years, certainly, but even the concentrated push of the Make in India campaign hasnt accelerated its growth to a level faster than the growth of the overall economy..
