Hindu Rate of Growth and Reform

In: Business and Management

Submitted By Abhinav24
Words 587
Pages 3
From the Hindu Rate of Growth to the Hindu Rate of Reform

Though economic liberalisation in India can be tracked back to the late 1970s, economic reforms began in earnest only in July 1991. Due to the existence of Licensing Raj, the Hindu rate of growth existed prior to 1991. India was a very slowing- growing economy at an average rate of 2.4 percent per year. India’s economy was much below not just East Asia and China but also Latin America and even Sub-Saharan Africa. Those were the times when Life expectancy was one of the world’s lowest, only a small proportion of the adult population was literate
The Licensing Raj brought with it many restrictions on the setting up and running of businesses in India. The Planning commission centrally administered the economy of the country. There was intervention by the state in most of the matters including influence over resource allocation, what the private firms will invest in and how much they can invest, how the goods capacity was to be utilised, the price of the product at which it would be sold. The licensing to running businesses was given to a select few under the LICENSE RAJ. Firms in the formal economy became ever more dependent on government approvals for the most basic business decisions. In agriculture, private investment in storage was controlled indirectly by ceilings on the amount and in some states the period for which commodities can be stored. The central pillar of the policy was import substitution, the belief that India needed to rely on internal markets for development, not international trade—a belief generated by a mixture of socialism and the experience of colonial exploitation. Wide differentials existed for lending rates depending on the sector and the size of loan. Foreign exchange reglulations complemented restrictive trade regulations. Firms with more than 40 percent foreign equity…...

Similar Documents

Economic Growth and Saving Rate

...Saving and Economic Growth Daniel L. Thornton, Vice President and Economic Adviser he U.S. personal saving rate increased to nearly 5 a simple observation. Nevertheless, the direction has been percent in the second quarter of 2009. Although positive. saving has its advantages, many analysts fear that a That personal saving and growth are likely to be posirising saving rate could hamper the economic recovery: tively related in the long run does not preclude the possibilConsumer expenditures are such a large component of ity that a higher saving rate can slow economic growth in aggregate demand that even a small decline in consumption the short run. To investigate this possibility, we calculate could have a noticeable effect, and more saving means less the simple percent correlation between the saving rate in consumption. We look at the data on the U.S. personal the current quarter and the growth rate of output in the current quarter and in the next eight quarters. This is shown saving rate and GDP growth since 1948 for some insight in the table. into how likely it is that increased personal saving will slow economic growth. The chart shows both the quarterly U.S. personal saving Many analysts fear that a rate (personal disposable income less personal outlays) and the annualized growth rate of real gross domestic product rising saving rate could hamper (GDP) over the period 1948:Q1–2009:Q2. The personal the economic recovery. saving rate increased......

Words: 755 - Pages: 4

Long Term Growth Rate of Countries

...(Thirlwall 1979) represents a model that long term growth rate of countries can be determined by the ratio of export growth and the income elasticity of demand for foreign goods. Particularly, the model uses the balance of payment as an indicator to determine counties growth rate. Base on the article, this essay is separated into three parts, first, introduces the article in relation to Thirlwall’s law. Second, demonstrates the arguments of Thirlwall’s law. Lastly, examines the weakness of the model. The present section briefly introduces the aims of Thrilwall’s paper. Firstly, the paper (Thirlwall 1979) judged the classical approaches by using productivities and factor supplies to explain the different growth rate between countries that was not satisfactory. As the result, the differences could be explained by the constraints on demand; indeed, the balance of payment is the central constraint for an open economy. Then, the paper predicts that the growth rate can be examined by the relation between foreign countries’ rate of income expansion, which are the income elasticity of demand for export and the income elasticity of demand for imports (Grullon 2011). Moreover, the paper used developed countries as evidence to approximate the growth rate by using the balance of payment constraint growth model. The first argument of Thirlwall’s law lies on the constraint on demand instead of supply side, by explaining the differences in growth rate between countries. The paper......

Words: 821 - Pages: 4

The Impact of Financial Liberalization Reform on Economic Growth: an Empirical Survey on China

...financial liberalization reform on economic growth: an empirical survey on China Introduction: In the past few decades, financial liberalization would be a main driving force and trend on countries’ financial reform. It aims to eliminate restrictions on financial markets and financial institutions, both domestically and internationally (Financial Liberalization). Thus, as a benefit of financial liberalization, a surge of competition and innovation was awakened in the US and rapid spread to other advanced economies’ financial market between 1970s and 1980s. As a result, banks had become bigger and financial intermediation was cheaper (Anon. 2007). However, an excessive freedom could encourage financial institutions to take unnecessary risks on lending business which would lead to financial crisis. The current great economic recession was caused by a new financial instrument crisis, subprime crisis which started from developed economies which had high level of financial liberalization. Therefore, to some extent, financial liberalization is risky in the process of financial reform. China had conducted its financial reform for more than 30 years. It had benefited from financial liberalization to accelerate capital accumulation. Now, it has the world’s most valuable banks and has the largest foreign exchange reserve. But, in general, Huang et al. (2010) stated that China’s financial reform is still focus long on quantitative growth but short on qualitative growth in financial......

Words: 1053 - Pages: 5

Interest Rates and Industrial Growth 2009-2012

...ECONOMICS PROJECT REPORT ON INTEREST RATES AND INDUSTRIAL GROWTH (2009-10 to 2011-12) Submitted By: Mohana Goel (12DM077) Mohit Bhola (12DM078) Nidhi Dalal (12DM090) Nishant Raj (12DM097) Nishtha Chugh (12DM098) Piyush Chib (12DM102) CONTENTS 1. INDIAN ECONOMY:Overview 2. INTEREST RATES 3.1. MEANING 3.2. REAL vs NOMINAL INTERST RATES 3.3. TYPES OF INTEREST RATES 3.4. EFFECT OF INTEREST RATE RISE 3. MONETARY POLICY 4.5. MEANING 4.6. OBJECTIVE 4.7. TOOLS 4.8. IMPORTANCE 4. 2009-10 5.9. OBJECTIVE OF MONETARY POLICY 5.10. POLICY STANCE 5.11. ANALYSIS 5.12. OBSERVATION 5. 2010-11 6.13. OBJECTIVE OF MONETARY POLICY 6.14. POLICY STANCE 6.15. ANALYSIS 6.16. OBSERVATION 6. 2011-12 7.17. OBJECTIVE OF MONETARY POLICY 7.18. POLICY STANCE 7.19. ANALYSIS 7.20. OBSERVATION 7. CONCLUSION 8. RECOMMENDATION 9. BIBLIOGRAPH INDIAN ECONOMY: AN OVERVIEW India is a South Asian country that is the seventh largest in area and has the second largest population in the world. India covers an area of 3,287,240 square km and its population stands at 1.215 billion people in 2010. Understanding the Indian Economy Large, dynamic and steadily expanding, the Indian economy is characterized by a huge workforce operating in many new sectors of opportunity. The Indian economy is one of the fastest growing economies......

Words: 4324 - Pages: 18

Expected U.S. Gdp Growth Rate Going Forward

...Shylinda Graystreete Dr.Davis - Unit 2 Individual Project 29 July 2012 Expected U.S. GDP growth rate going forward The Gross Domestic Product (GDP) is a major factor that shows how the economy will either get better or worse. The GDP is how we can measure the spending and production of the U.S. The GDP is a total measurement usually calculated quarterly (Russell, 2012). These calculations show change to the economy even if products and services increased or decreased, According to Russell, (2012) regardless of changes in the purchasing power of the currency. There are many things that affect our economy such as international debt, increase in taxes, the effect to interest rates, the rise in unemployment, the poor failing real estate market, lack of investing, lack of spending by consumers, which is directly affected because of lack of employment. Some believe that the economy will eventually recover. This may be a slow process, however. Those in the business world believe this will most likely put inflation at a standstill. (TBQ, 2012). It is predicted that the GDP will continue to go up and down for years to come as the US tries to recover from the economic slump that it has found itself in unless congress and the president can pull us out. There are three different methods of determining GDP. The first one is estimating each industry’s gross output or production (Wells and Krugman, 2009). Second would be to measure income (Wells et al). Third would be expenditures...

Words: 672 - Pages: 3

Bangladesh Gdp Growth Rate

...Bangladesh GDP Growth Rate The Gross Domestic Product (GDP) in Bangladesh expanded 6.30 percent in 2012 from the previous year. GDP Growth Rate in Bangladesh is reported by the Bangladesh Bank. Historically, from 1994 until 2012, Bangladesh GDP Growth Rate averaged 5.58 Percent reaching an all time high of 6.70 Percent in June of 2011 and a record low of 4.08 Percent in June of 1994. Bangladesh is considered as a developing economy. Yet, almost one-third of Bangladesh’s 150m people live in extreme poverty. In the last decade, the country has recorded GDP growth rates above 5 percent due to development of microcredit and garment industry. Although three fifths of Bangladeshis are employed in the agriculture sector, three quarters of exports revenues come from producing ready-made garments. The biggest obstacles to sustainable development in Bangladesh are overpopulation, poor infrastructure, corruption, political instability and a slow implementation of economic reforms. This page includes a chart with historical data for Bangladesh GDP Growth Rate. Bangladesh Consumer Price Index (CPI) Consumer Price Index (CPI) in Bangladesh increased to 176.38 Index Points in August of 2012 from 173.18 Index Points in July of 2012. Consumer Price Index (CPI) in Bangladesh is reported by the . Historically, from 1993 until 2012, Bangladesh Consumer Price Index (CPI) averaged 96.51 Index Points reaching an all time high of 176.38 Index Points in August of 2012 and a record low of 51.99......

Words: 371 - Pages: 2

Relationship Between the Savings Rate and Economic Growth of China

...Relationship between the Savings Rate and Economic Growth of China By: Muhammad Saddam Hossain Institute of Business Administration, Jahangirnagar University Submitted to: Dr. Shuddhasattwa Rafiq Associate Professor, Institute of Business Administration, Jahangirnagar University Submitted by: Muhammad Saddam Hossain Batch: 21st Class ID: 1565 Date of Submission: June 11, 2013 Institute of Business Administration, Jahangirnagar University 1 Table of Contents: Contents 1. Introduction 2. Savings Rate 3. China’s High Savings Rates 4. How to calculate Savings Rate a. Private saving b. Public saving c. National Saving d. Savings Rate 5. China’s Comparative Savings Rate 6. Relationship between the saving rate and economic growth 7. Savings Rate Vs Economic Growth of China 8. Conclusion Page 3 3 3 4 4 4 4 4 5 6 7 9 Illustrations: Contents  Figure 1: National Saving Rate by Region  Figure 2: Relation Between savings rate and Growth  Figure 3: Saving and Investment Rate of China  Table 1: National Reserves by Countries Page 5 6 7 8 2 Introduction: A savings rate is refers to the percentage of Gross Domestic Product (GDP) savings by households in a country. It indicates the financial state and growth of the country, as household saving is the main source of government borrowing to fund public services. It varies among countries and is influenced by various factors such as retirement age, borrowing constraints, income distribution over......

Words: 1982 - Pages: 8

Population Growth Rates

...Population Growth Rates Report With our product being be most successful in a highly populated country, the following are the top ten most populated countries and their growth rates. China is the largest country with a population of 1.3 billion and an annual growth rate of 2.5%. Indian is second with a population of 1.087 billion and an annual growth rate of 1.7%. The United States in the third most populated country with a population of 294 million and an annual growth rate of 0.6%. Indonesia is the fourth most populated country with a population of 218 million and an annual growth rate of 1.6%. Brazil is the fifth most populated country with a population of 179 million and an annual growth rate of 1.3%. Pakistan is the sixth most populated country with an annual growth rate of 159 million and an annual growth rate of 2.4%. Russia is the seventh most populated country with a population of 144 million and an annual growth rate of -0.6%. Bangladesh is the eighth most populated country with a population of 141 million and an annual growth rate of 2.1%. Nigeria is the ninth most populated country with a population of 137 million and an annual growth rate of 2.9%. Japan is the tenth most populated country with a population of 128 million and a annual growth rate of 0.1%. (2004 World Population Data Sheet, 2004, p. 2-12) China, as of 2002, became the largest recipient of foreign direct investment at $53 billion. While this is by far the largest amount, it only represents a per...

Words: 661 - Pages: 3

Bacterial Growth Rates

...Unit 3. Assignment 1: Bacterial Growth Rates 1. Mediums that could be used to determine shigellosis include Btilliant Green Agar, and Triple Sugar-Iron Agar. Expected results in a confirmed case of shigellosis are as follows: Brilliant Green Agar – Isolated Shigella colonies which do not ferment lactose or sucrose and appear red or white in color with no growth to trace growth on the Agar plate will be present. Triple Sugar-Iron Agar – Presence of Shigella will manifest as a red slant with a yellow butt with no H2S present. In Brilliant Green Agar, E. coli O157 would present as isolated yellow to greenish colonies surrounded by yellow-green zones. In the Triple Sugar-Iron Agar, E. coli O157 will manifest as a red slant, red butt indicating no change and no sugar fermented. These growth results and their marked differences would allow for distinguishing between E. coli and shigellosis (Black, 2012). 2. To separate a mixed culture of S. aureus, S. epidermidis, and P. aeruginosa into three pure cultures, the following procedure should be used: a) Make an isolation plate by diluting the mixed culture until the individual organisms become separated or far enough apart on the agar surface to be distinguished. This will form visible colonies of each organism which will be isolated from the other colonies present. b) Flame the inoculation loop before each transfer to avoid contamination. c) Using the inoculation loop, aseptically “pick off” the......

Words: 933 - Pages: 4

Hindu Rate

...The Hindu rate of growth is a derogatory term referring to the low annual growth rate of the planned economy of India before the liberalizations of 1991, which stagnated around 3.5% from 1950s to 1980s, while per capita income growth averaged 1.3%. India’s economic performance during the first three decades since independence was christened the “Hindu” rate of growth, a term connoting a disappointing but not disastrous outcome The word "Hindu" in the term was used by some early economists to imply that the Hindu outlook of fatalism and contentedness was responsible for the slow growth. The later economists attribute the rate to the Government of India's protectionist and interventionist policies (see Licence Raj), rather than to a specific religion or to the attitude of the adherents of a particular religion. That cliché, of course, is gradually lapsing into disuse thanks to the remarkable transformation in India during the last two decades. Since 1980, its economic growth rate has more than doubled, rising from 1.7 percent (in per-capita terms) in 1950-1980 to 3.8 percent in 1980-2000 Until 1991, India’s policy makers followed misguided policies that closed the economy to international trade, erected inefficient industries under state guidance, riddled the private sector with extraordinarily cumbersome and detailed regulations, and suffocated private economic activity with controls and bureaucratic impediments. Then in 1991, the big breakthrough happened. Spurred by......

Words: 619 - Pages: 3

Services Sector Growth Rate in India Gdp

...Services Sector Growth Rate in India GDP Services Sector Growth Rate in India GDP. The Services Sector contributes the most to the Indian GDP. The Sector of Services in India has the biggest share in the country's GDP for it accounts for around 54% in 2009. The contribution of the Services Sector in India GDP has increased a lot in the last few years. The Services Sector contributed only 15% to the Indian GDP in 1950. Further the Indian Services Sector's share in the country's GDP has increased from 43.695 in 1990- 1991 to around 51.16% in 1998- 1999. This shows that the Services Sector in India accounts for over half of the country's GDP. The Reasons for the growth of the Services Sector contribution to the India GDP The contribution of the Services Sector has increased very rapidly in the India GDP for many foreign consumers have shown interest in the country's service exports. This is due to the fact that India has a large pool of highly skilled, low cost, and educated workers in the country. This has made sure that the services that are available in the country are of the best quality. The foreign companies seeing this have started outsourcing their work to India specially in the area of business services which includes business process outsourcing and information technology services. This has given a major boost to the Services Sector in India, which in its turn has made the sector contribute more to the India GDP....

Words: 258 - Pages: 2

Policy Reform on Population Growth in Nigeria from 1999 Till Date

...indicates high dependence ration. The high fertility rate which led to having high number of young persons who are future parents constitutes an unstoppable momentum for growth is built into mainstream of the population. This has a lot of implications on quality of life, resources available for social services including education, health as well as economic growth and employment opportunity. In response of the challenges posed by Nigeria rapid population, the need for preventive check as postulated by Robert Malthus (1882) arose in order to ensure balance population growth and available resources and this necessitated her participation in international gatherings. According to National Population Policy (2004), Nigeria participates in the Arusha Tanzania, 1984 meeting which was held before world population conference in Mexico. At the Arusha meeting, report shows that population of Nigeria was increasing at a alarming rate compare to the proportion of food production. This observation also repeated at the Mexico1984 World Population gathering. One of the outcomes or agreements at the Mexico conference was that it essential for the countries to develop population policy that the country will continue to use as a road map to find solution to the increasing population day by day. As switch response to this resolution, the Nigeria Government on February 4, 1988 approved the overall Policy on Population for Development, growth, and Self-dependent. In respect with......

Words: 1036 - Pages: 5

Taxol’s Effect on Rates of Tip Growth and Nuclei Position in Neurospora Crassa

...ABSTRACT The purpose of the study was to detect the rates of hyphal tip growth and nuclei position of N. crassa in influence of drug medium, Taxol. The results of the experiments show that the rate of hyphal tip growth and nuclei position are much lower in drug medium than in the control. Taxol have different effect on growth of tip and distance travelled by nuclei. Moreover, the rate at which the nuclei displace and growth of the tips are dependent on the medium and not on each other. Thus, the results conclude that drug effected fungus affects the tip growth rate and nuclei displacement. INTRODUCTION The purpose of the experiment is to study the hyphal tip growth, and to observe the effects of a drug on the tip growth and the nuclei position of a fungal hyphae. The fungus used in the study is Neurospora crassa, a common red bread mold of Europe and America and was originally obtained from sugar-cane bagasse near New Orleans (Shear and Dodge 1927). It is a common model organism in biology, genetics, cell biology labs, and in research. Because it is quickly reproducing, is easy to culture and can survive on minimal media. Moreover, microtubules and actin are cytoskeletal filaments responsible for structural support for fungus tip, and help in replication of the cell. Actin filament helps tip to grow by polymerizing, so actin subunit comes together form branch-like structure at the tip is called hyphae (Rosenblum and Shivers 2000). The drug was used in this......

Words: 2896 - Pages: 12

Expected U.S. Gdp Growth Rate Going Forward

...The United States economy, based on recent history of past recessions, should be going forward and getting better, but is it? According to statistics from Bureau of Economic Analysis (BEA), the United States is still trying to recover. The gross domestic product rate keeps going up and down; it does not keep going up, as it did in past recessions. What is to become of the United States if President Obama cannot get us out of the recession? EXPECTED U.S. GDP GROWTH RATE GOING FORWARD The gross domestic product (GDP) growth rate is an important indicator of the U.S. economic health. The slope of the yield curve – the spread between long and short - term interest rates – is a good predictor of future economic activity. As these slopes shift, you will get periods of high and low growth in GDP. There are three different methods of determining GDP. The first one is estimating each industry’s gross output and subtracts intermediate inputs from other industries to derive each industry’s residual value-added, which is sometimes called the production approach (Wells and Krugman, 2009). The second method is the income approach, which measures the income earned by the different factors of production (Wells et al). The third method is the final expenditures approach, which shows what is happening across different types of spending throughout the economy, usually done annually (Wells et......

Words: 785 - Pages: 4

Us Gdp Growth Rate

...In normal times, a 3.2 percent GDP growth rate for the United States is good. In the 1980’s the U.S. suffered another severe recession. During that recovery, GDP grew at a 7 to a 9 percent rate for more than one year. A 3.2 percent GDP annual growth rate barely creates enough jobs to keep up with the expanding population. It does nothing for all those who lost their jobs and are looking for work. The U.S. unemployment rate is 9.7 percent and the underemployment rate, a more accurate measure of the true unemployment situation is running at the 16.5% level. What can we learn from the Bureau of Economic Analysis (BEA) report on the GDP growth rate that might be helpful to investors? Jobless growth “Okun’s rule of thumb” points toward an economy that must grow at the 3.0 – 3.5 percent level to maintain current employment levels. If the U.S. economy was operating at full employment status, a 3.0-3.5 percent growth rate works just fine. The problem is the U.S. has 9.7% unemployment and 16.5% underemployment. We will get another look at the employment situation when the Bureau of Labor statistics (BLS) releases the number for April on May 7, 2010. The chart below from the BLS report for March 2010 shows that the total employment for the U.S. is back where it was at the end of the recession that ended in January 2003. If the U.S. GDP only achieves growth at 3.0 to 3.5 percent growth rate, the level of employment will only cover the expansion of the population, leaving 7.5 million...

Words: 1045 - Pages: 5