Bangladesh is set to beat India in terms of per capita gross domestic product (GDP) this calendar year, thanks to a sharp contraction in the Indian economy due to Covid-19 and the economic lockdown.
As India’s growth falls, amongst the most in the world, India is on track to fall below Bangladesh in terms of the per capita GDP. India will grow smartly next year, as per IMF.
As per the World Economic Outlook report of IMF released on Tuesday, India’s per capita GDP is set to plunge by 10.5 percent to $1,877 this fiscal year ending March 31, 2021. This will make India the third poorest country in South Asia with only Pakistan and Nepal behind.
Bangladesh, Bhutan, Sri Lanka and Maldives now have more per capita GDP than India.
Bangladesh’s per capita GDP in dollar terms is expected to grow 4 per cent in 2020 to $1,888, overtaking India.
Till five years back, India’s per capita GDP was 40 per cent higher than Bangladesh. In the last five years, Bangladesh has grown three times the rate of India, at 9.1 per cent compared to 3.2 per cent for India, a much larger economy.