Rajan, in his address, said a growth rate of 7% per year for 25 years was “very very strong” growth, but in some sense this has become the new ‘Hindu rate of growth’, which earlier used to be 3.5%, PTI reported.
‘Hindu rate of growth’ refers to the period before the 1990s when India’s economy growth stagnated at that pace.
“The reality is that 7% is not enough for the kind of people coming into the labour market and we need jobs for them, So, we need more and cannot be satisfied at this level,” Rajan said.
He also said that India was now sensitive to global growth since it has become a much more open economy, and if the world grows, it also expands at a faster pace.
India, he asserted, is capable of strong growth. “If we go below 7%, then we must be doing something wrong,” he said, adding that