Bangladesh to beat India in per capita GDP this year

Bangladesh is set to overtake India in terms of per capita gross domestic product (GDP) this year, according to a latest outlook report released by the International Monetary Fund on Tuesday.

The IMF estimated that India’s per capita GDP will contract 10.3 percent, ending March 31, 2021, while Bangladesh is expected to grow at 3.8 percent, which will help Bangladesh beat India.

The report said Bangladesh's per capita GDP will increase to $1,887.97 at current prices at the end of this year, up 3.96 percent from $1,816.04 in 2019, while India's per capita GDP would drop by 10.3 percent to $1,877 in 2020.

India had world’s one of largest lockdowns to curb the spread of coronavirus causing the economy to shrink by record 23.9 percent in the April-June quarter.

Gita Gopinath, the IMF’s chief economist, said IMF has “significantly downgraded” India’s growth for the fiscal year 2021. “The hit to the economy has been large and pretty much broad-based,” she added.

Bangladesh’s economic growth has been supported by its fast-growing export sector and a steady increase in savings and investment, while India’s exports have been falling in recent years. Savings and investment also declined.

Just 5 years ago, India’s per capita GDP was nearly 40 percent higher than Bangladesh.