Political Science · Political Processes in India
UGC NET January 2017 Political Science
Who described Indian capitalism as 'Dharmashala Capitalism'?
AVKRV Rao
BJ Bhagwati
CAmartya Sen
DRaj Krishna ✓ Correct
Correct answer: (D) Raj Krishna — Raj Krishna described India's protected, subsidy-driven economy as "dharamshala capitalism", likening it to a free rest-house that everyone drew benefits from but no one was responsible for sustaining.
Explanation
★Raj Krishna described India's protected, subsidy-driven economy as "dharamshala capitalism", likening it to a free rest-house that everyone drew benefits from but no one was responsible for sustaining.
★He was an economist at the Delhi School of Economics and served as a member of the Planning Commission in the late 1970s.
★He is best known for coining the "Hindu rate of growth" in 1978 for India's low average growth of about three to four per cent before the 1991 reforms.
★The phrase captured the inefficiency of the licence-permit raj, where firms competed for state favours rather than for markets.
★V.K.R.V. Rao pioneered national income estimation and founded the Delhi School of Economics and ISEC; Jagdish Bhagwati is a trade economist; Amartya Sen works on welfare and capabilities.
★A reliable way to spot this in the exam: link both "dharamshala capitalism" and the "Hindu rate of growth" to Raj Krishna.
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