: SBI ecowrap report junks Raghuram Rajan’s low growth theory #finance #StockMarketNEWS #Business Press Trust of India New Delhi An SBI research report on Tuesday dismissed arguments that India

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SBI ecowrap report junks Raghuram Rajan’s low growth theory #finance #StockMarketNEWS #Business
Press Trust of India

New Delhi

An SBI research report on Tuesday dismissed arguments that India is dangerously close to Hindu rate of growth saying such statements are “ill-conceived, biased and premature” in the wake of the recent GDP numbers and the available data on savings and investments.

“Interpretations of GDP growth based on noisy quarterly numbers is a game of smoke and mirror,” said the SBI report ‘Ecowrap’.

The report comes within days of former Reserve Bank Governor Raghuram Rajan saying that India is “dangerously close” to the Hindu rate of growth in view of subdued private sector investment, high interest rates and slowing global growth.

Rajan said that sequential slowdown in the quarterly growth, as revealed by the latest estimate of national income released by the National Statistical Office (NSO) last month, was worrying.

Hindu rate of growth is a term describing low Indian economic growth rates from the 1950s to the 1980s, which averaged 3.5%. The term was coined by Raj Krishna, an Indian economist, in 1978 to describe the slow growth

“India’s quarterly Y-o-Y GDP growth has been in a declining trend in FY23 sequentially, prompting arguments that India’s growth is reminiscent of a pre 1980 Raj Krishna coined growth rate,” the report said.

Apart from the fact that, quarterly growth numbers are “noisy and should be best avoided for any serious interpretation (on an average, India’s GDP growth has witnessed Rs 2 lakh crores upward revision for the 3 year ended FY23), “we find such argument ill-conceived, biased and premature at its best when weighing the recent GDP numbers against the available data on savings and investments.”