Why India Slowed by Raghuram Rajan - Project Syndicate

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"Slow" or "Fast" is a relative term. It also depends on the frame of reference. If we look at from the perspective of reported GDP growth rate, India is way ahead of many developed countries.

The normal tendency of comparison with previous year alone has its own fallacy. I was discussing during an assessment of an organisation for an Excellence Award. The company had significant growth in the business and customer traction compared to its previous years performance. The CAGR was to the tune of 50% plus. While reviewing the information further, it also came out that the market has been growing at a much higher rate than the growth of the company.

I also believe that the growth has to be sustainable. Growing at a very high rate brings its own problems relating to inability to manage the "growth pangs\" that are bound to create disorder. I sometime like the concept of "Hindu Growth Rate" which modern economist may not like. I think The Hindu Growth Rate is more sustainable and considers all factors including environment. For example, the higher Growth Rate in developed countries has resulted in life style that is causing significant environment problems. The demand on Carbon Credits from developed country is an indication of this.