Hindu Rate of Growth: An Anthropological Understanding of India’s Economy
Introduction
The term “Hindu Rate of Growth” is often used to describe India’s slow economic growth between the 1950s and 1970s. While commonly discussed in economics, anthropology helps us understand this phase by analysing economic behaviour, institutions, and cultural attitudes rather than focusing only on statistics.
This topic is relevant for Anthropology Optional Paper 1 (Economic Organisation).
Meaning of Hindu Rate of Growth
Coined by economist Raj Krishna, the term referred to India’s average GDP growth of around 3–3.5% during the pre-liberalisation period.
Anthropologically, the term does not relate to religion but to:
- Risk-averse economic behaviour
- Strong bureaucratic control
- State dominance over markets
These were features of India’s institutional structure at the time.
Structural Reasons for Slow Growth
From an anthropological lens, economic systems operate within social and political frameworks.
Key reasons included:
- Licence Raj restricting entrepreneurship
- Protectionist policies limiting global trade
- Dominance of public sector enterprises
- Agrarian stagnation and low productivity
Population growth further reduced per capita income gains.
Cultural Shift After Economic Reforms
Post-1980s and especially after 1991, India witnessed:
- Reduced state control
- Market liberalisation
- Growth of entrepreneurship
- Expansion of the service sector
Anthropologically, this phase represented a cultural transformation in economic organisation, not just a policy change.
Is the Term Still Relevant?
Many scholars criticise the term today as culturally misleading. Instead, phrases like:
- “Pre-reform economic stagnation”
- “State-controlled growth phase”
are preferred to avoid cultural stereotyping.
Anthropological Insight
Anthropology emphasises that:
- Economic growth depends on institutions and values
- Policy reforms lead to behavioural and cultural changes
- Economy is a social system, not just a numerical model
India’s growth story reflects the close link between society, state, and economy.
Conclusion
The Hindu Rate of Growth was a product of specific institutional and cultural conditions. Anthropology helps us understand how economic systems evolve when social values, governance, and global interactions change.