Indias Growth Story

* The economic development in India followed socialist-inspired policies for most of its independent history, including state-ownership of many sectors; extensive regulation and red tape known as "Licence Raj"; and isolation from the world economy.

* India's per capita income increased at only around 1% annualized rate in the three decades after Independence.

* Since the mid-1980s, India has slowly opened up its markets through economic liberalization. After more fundamental reforms since 1991 and their renewal in the 2000s, India has progressed towards a free market economy.[1]

* In the late 2000s, India's growth reached 7.5%

States have large responsibilities over their economies. Maharashtra has proved all time hit contributor to boost up the economic rise since independence. The annualized 1999–2008 growth rates for Tamil Nadu (9.8), Gujarat (9.6%), Haryana (9.1%), or Delhi (8.9%) were significantly higher than for Bihar (5.1%), Uttar Pradesh (4.4%), or Madhya Pradesh (6.5%)

Since the economic liberalization of 1991, India's GDP has been growing at a higher rate.[21]

Year | Growth (real) (%) |

2000 | 5.5 |

2001 | 6.0 |

2002 | 4.3 |

2003 | 8.3 |

2004 | 6.2 |

2005 | 8.4 |

2006 | 9.2 |

2007 | 9.0 |

2008 | 7.4 |

2009 | 7.4 |

2010 | 10.4 |

2011 | 7.2

|

The Hindu rate of growth - low annual growth rate of the socialist economy of India before 1991, which stagnated around 3.5% from 1950s to 1980s, while per capita income growth averaged 1.3%.[1]

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.

The term was coined by Indian economist Raj Krishna[2][3]

It suggests that the low growth rate of India, a country...