Bangladesh is richer than India. Till 2016 India was way ahead of the neighboring country says IMF
The Per capita
income of an average Bangladeshi citizen, the country we liberated from
backwardness not long ago, will be more than the per capita income of an
average Indian. This is the issue which has caught international attention than
the expected sharp contraction of the Indian economy this year.
latest Economic Outlook, Bangladesh has overtaken India in GDP per capita.
While Bangladesh has indeed made strides, its smaller population helps lift
onwards, India’s growth rate has decelerated sharply
economy has been clocking rapid GDP growth rates since 2004. However, this pace did not alter the relative
positions of the two economies between 2004 and 2016 because India grew even
faster than Bangladesh. But since 2017 onwards, India’s growth rate has
decelerated sharply while Bangladesh’s has become even faster.
Typically, countries are compared on the
basis of GDP growth rate
countries are compared on the basis of GDP growth rate. For the most part since Independence,
India’s economy has been better than Bangladesh’s. This can be seen from GDP
growth rates. India’s economy
has mostly been over 10 times the size of Bangladesh, and grown faster every
per capita income also involves another variable — the overall population — and
is arrived at by dividing the total GDP by the total population. As a result,
there are reasons why India’s per capita income has fallen below Bangladesh
Over the same
15-year period, India’s population grew faster (around 21 per cent) than Bangladesh’s population (just
under 18 per cent).
per capita GDP was merely half of India’s in 2007 — but this was just before
the global financial crisis. It was roughly 70 per cent of India’s in 2014 and this gap closed
rapidly in the last few years.
India’s GDP is set to reduce by 10 per cent, Bangladesh’s is expected to grow by
almost 4 per cent
most immediate factor was the relative impact of Covid-19 on the two economies
in 2020. While India’s GDP is set to
reduce by 10 per cent, Bangladesh’s is expected to grow by almost
4 per cent. In other words, while India is one of the
worst affected economies, Bangladesh is one of the bright spots.
International Monetary Fund’s latest update on the World Economic Outlook was
released. In the IMF’s estimation, in 2020, growth of India’s gross domestic
product (GDP) will witness a contraction of over 10 per cent. This more than
doubles the level of contraction — from 4.5 per cent — that the IMF had projected for India
just a few months ago.