Bangladesh Per Capita GDP will ahead of India in this financial year (January to December 2020). The International Monetary Fund (IMF) has shared this information. The IMF has stated that per capita GDP in Bangladesh can be $ 1,888 (about Rs. 1,38,400) where India can be $ 1,877 (about Rs. 1,37,594). The opposition parties are attacking Modi Government since this report cane in public domain. However, BJP seems very upset with the IMF after this report as per sources.
The IMF said that the first-quarter results of India has adversely affected the economy. It seems that the coming days will continue to be difficult for the Indian Economy. The road ahead is quite challenging for business in India. As per the IMF report, India’s condition will be worse than Bangladesh. It’s per capita GDP will also fall below Bangladesh. It may be the side effect of Covid-19 and lockdown.
India GDP has dropped by 10% were Bangladesh Per Capita GDP will grow by 4 per cent
This year India’s per capita GDP has dropped by 10%. Whereas Bangladesh per capita GDP has a growth of 4 per cent. India’s per capita GDP was far ahead of Bangladesh until a few years ago. But due to rapid exports and focus on the economy has changed Bangladesh per capita GDP significantly. India’s approach in GDP was poor in recent years. India priority in recent years were different than improvising GDP.
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If the IMF estimates are correct then India will only ahead of Pakistan and Nepal in terms of GDP in the region. This means that Bhutan, Sri Lanka, Maldives and certainly Bangladesh in South Asia will be ahead of India. While India’s performance may decline but Nepal and Bhutan’s economies are expected to grow this year.
IMF’s estimate for India is worse than the RBI’s estimate for GDP
The IMF’s estimate for India is worse than the RBI’s estimate of 9.5%. It is also disappointing compare to the World Bank’s earlier estimate. The World Bank has predicted a 9.6% decline in India’s GDP in FY 2021. IMF report said that India’s decrease in GDP by 10.3% is the third-highest decline in the world after Spain and Italy.
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The IMF said in its report that this would be the biggest decline between developing countries and emerging economies. It also said in IMF report that emerging economies other than China will see a deficit of 5.7 per cent in 2020. The report also highlighted the risk of spreading coronavirus in countries like India and Indonesia. The economies of these countries are mostly dependent on tourism and commodities. But both this sector is badly affected due to Covid-19 this year.
India economy decline this year will be worst than the 1990–91 crisis
The data in the report stated that the Indian economy may be the most affected comparing 1990–91 crisis in 2020. It further states that India is likely to be the worst economy in South Asia after Sri Lanka. However, the IMF report also said that recovery in India will accelerate in 2021. This will once again put India ahead of Bangladesh in per capita gross domestic product (GDP).
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