Since Independence, India’s economic growth has steadily accelerated, albeit from a low level, with moderating inflation rate. That was until about a decade ago. Breaking free from the colonial stagnation, domestic output (GDP) grew annually at around three-and-a-half per cent during the first three decades — pejoratively called the “Hindu growth rate”. The annual growth increased to about five-and-a-half per cent in the next two decades and 7%-8 % during the 2010s. As the population growth rate declined annually, from over 2% in the 1960s to around one-a-half pre cent, income per head raised even further, reducing absolute poverty. With a moderate balance-of-payment deficit and modest share of external debt to total debt, as ratios of GDP, India — at first glance — witnessed “virtuous growth” in deepening democracy. (Read More)
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