Raj Krishna and the "Hindu Rate of Growth"

How Raj Krishna coined the phrase "Hindu rate of growth" for India's slow growth of about 3.5 percent from the 1950s to 1980s, and his research on farmers' responses to prices.

Raj Krishna (1925-1985) was an agricultural economist and planner.

The phrase

Raj Krishna coined “Hindu rate of growth” to describe India’s growth of about 3.5 percent a year from the 1950s to the 1980s.
The term described persistent slow growth, not religion; Krishna blamed policies, not culture.

Criticism of the term

Some later said the name was misleading, since slow growth reflected economic policies like licensing and protection.

Farmers respond to prices

Raj Krishna’s research showed Indian farmers respond to prices, like farmers elsewhere.
This challenged views that traditional farmers ignored market signals.

Public service

He was a member of the Planning Commission (1977-80).

Legacy

After the 1980s and especially 1991, India’s growth rose well above the old “Hindu rate”.

The price response

When a crop's price rose, Raj Krishna's data showed farmers planted more of it, just like farmers in richer countries.

Thinking the "Hindu rate" blamed religion

Raj Krishna blamed policies for slow growth.

Key takeaways

Raj Krishna coined "Hindu rate of growth" for about 3.5 percent growth.
He blamed policies, not culture.
He showed Indian farmers respond to prices.
Growth rose far above that rate after the 1980s.