- Concept: “Hindu Rate of Growth” was a term coined by Prof. Raj Krishna.
- It referred to the 3.5% growth record of the previous three decades (1950s-1980s).
- Reasons for Sluggish Growth:
- Pervasive industrial control through the license raj.
- Monopolies and Restrictive Trade Practices Act (MRTP) 1969.
- Nationalization of banks and other industries.
- Self-sufficiency and inward-looking trade policy.
- Import Substitution Industrialization (ISI).
- These structural weaknesses built up in the system.