Hindu growth rate is related to :

Question

Accepted Answer

The correct option is 3: National Income.

The term 'Hindu rate of growth' was coined by Indian economist Raj Krishna in 1978. It was used to describe the persistently low annual growth rate of the Indian economy (averaging around 3.5%) achieved between the 1950s and the 1980s. This sluggish growth was primarily measured in terms of the country's Gross Domestic Product (GDP) or, synonymously in this context, National Income. The phrase was meant to highlight the stagnant economic performance against the backdrop of centralized planning and license raj policies, suggesting a slow, almost fatalistic rate of growth. This concept specifically refers to the overall growth performance of the Indian economy during that period, making National Income the core metric being discussed.

The incorrect option is 1: Population. While population growth is a crucial factor in development and often outpaced economic growth during this period, the Hindu rate of growth itself is a direct measure of economic output, not population.
The incorrect option is 2: Per capita income. Per capita income (National Income divided by Population) is a result of the growth rate, but the term 'Hindu rate of growth' primarily refers to the aggregate growth rate of the economy, or National Income/GDP. If National Income grows slowly, per capita income will grow even slower due to population increase.
The incorrect option is 4: Saving and Investment. Saving and investment are key determinants or drivers of economic growth, but they are not what the 'Hindu rate of growth' measures. The rate is the outcome (slow growth of National Income), which low rates of saving and investment in that era contributed to.