Due to poor private sector investment, high interest rates, and slower global development, India is “dangerously near” to the Hindu rate of growth, according to former RBI Governor Raghuram Rajan. According to him, the National Statistics Office’s (NSO) most recent estimate of national income, which was issued last month, showed a sequential decrease in the quarterly rise.
Hindu rate of growth, or low Indian economic growth rates between the 1950s and the 1980s, is the phrase used to describe them. In the third quarter (Oct.–Dec.) of the current fiscal, the Gross Domestic Product (GDP) dropped to 4.4% from 6.3% in the second quarter (July–Sept.) and 13.2% in the first quarter (April-June).
In the third quarter of the prior fiscal year, growth was 5.2%. “The positive adjustments to previous GDP estimates will, of course, be cited by the optimists, but I am concerned about the sequential decline. I’m not sure where we find further economic momentum with the private sector refusing to spend, the RBI continuing to raise rates, and the likelihood that the pace of global growth would decline later this year “said Rajan.
What India’s growth would be in the fiscal years 2023–2024 is the crucial issue, Rajan said, adding “I worry that formerly we would consider ourselves fortunate if we reached 5% growth. The most recent Indian GDP figures for October to December (4.4% from a year ago and 1% from the previous quarter) show a slowing rise from the astronomical figures in the first half of the year.” My worries weren’t unfounded. The RBI forecasts a 4.2% growth rate for the last quarter of current fiscal year. Now, the quarter from October to December has an average annual growth rate of 3.7% when compared to the same pre-pandemic period from three years earlier.
