Former Reserve Bank of India (RBI) governor Raghuram Rajan recently said India was “dangerously close” to the 'Hindu rate of growth'
About Hindu Rate of Growth:
- It is a term describing low Indian economic growth rates from the 1950s to the 1980s, which averaged around 4%.
- The term was coined by the late economist Raj Krishna in 1978 to describe the slow growth in the country.
- H2: What is Gross Domestic Product (GDP)?
- GDP is the final value of the goods and services produced within the geographic boundaries of a country during a specified period of time, normally a year.
- The GDP growth rate is an important indicator of the economic performance of a country.
- It can be measured by three methods, namely, Output Method, Expenditure Method, and Income Method
Q1) What is the Income Method of GDP calculation?
It calculates the income earned by all the factors of production in an economy, including the wages paid to labor, the rent earned by land, the return on capital in the form of interest, and corporate profits.