Bangladesh goes ahead of India on per capita income
Bangladesh media has been abuzz over the announcement. However, economists suggest that Dhaka's statistical lead over will be temporary.
FollowIn what may trigger another round of Opposition brickbats, it has emerged that Bangladesh today has a higher per capita income than its neighbour India.
Multiple media reports cited by Bangladesh Planning Minister MA Mannan informed the country's cabinet that the country's per capita income had now increased from $2,064 to $2,227 -- That is about $280 higher than India' per capita income which is $1,947.
Bangladesh media has been abuzz over the announcement. However, economists suggest that Dhaka's statistical lead over will be temporary.Â
The dip in India's per capita income is on account of the sharp contraction in the economic growth due to the Coronavirus pandemic and the subsequent nationwide lockdown. As soon pandemic runs its course and economic activity gets back into top gear, India is expected to reverse the statistic and edge ahead again.
Besides, India's economy is over ten times the size of Bangladesh and has grown faster every year.
The latest International Monetary Fund data suggests that Bangladesh is projected to see a 5% GDP growth in 2021. India's GDP, on the other hand, is predicted to grow at 12.5% in FY 2021-2022.
The IMF had noted last year that till five years ago, India's per capita GDP was nearly 40% higher than Bangladesh's. However, Bangladesh's per capita GDP has risen at a compound annual growth rate of 9.1% in the last five years, against 3.2% growth reported by India during the period.
