Bangladesh beats India in per capita income

How Bangladesh beats India in per capita income?

Bangladesh Beats India in Per Capita Income, It’s an outstanding achievement by the Bangladesh government with their day-by-day improvement in the textile sector.

Bangladesh Beats India in Per Capita Income

Bangladesh beats India in per capita income
Bangladesh flag

It’s an outstanding achievement by the Bangladesh government with their day-by-day improvement in the textile sector. As a result, Bangladesh Officially has crossed India in terms of GDP per capita income. Bangladesh’s GDP per capita income is $,2227 and India’s GDP per capita income is $1947 (Data is officially from IMF 2021).

Well, should India be scared about this, and Bangladesh will become a 5 Trillion economy before India in the coming years and will rule out the whole of South Asia? The answer is no. Why? The data is in front of us. Bangladesh is getting ahead of us; it all clear. The question everyone is asking. But we need to understand the broader picture

What Is Per Capita GDP?

Indian GDP
Indian GDP

Per capita gross domestic product (GDP) is a metric that breaks down a country’s economic output per person and is calculated by dividing a country’s GDP by its population.

In simple terms

GDP per capita income =  GDP of Nation /Total population of nation

Well, it’s not that simple but for better understanding, let’s keep this formula in mind, and let’s look at some IMF 2021 data.

GDP per capitaThe population of each Nation
India’s GDP per capita – $1,947India: 136.64 crores
Bangladesh’s GDP per capita – $2,227Bangladesh: 16.3 crores
Sri Lanka’s GDP per capita – $3,830Sri Lanka: 2.18 crores
Pakistan’s GDP per capita – $1,543Pakistan: 21.66 crores
Nepal’s GDP per capita – $1,235.61Nepal: 2.86 crores
Bhutan’s GDP per capita – $3,280Bhutan: 7.63 lakhs

World’s GDP per capita income ranking:

1.) Luxembourg
2.) Singapore
3.) Ireland
4.) Qatar
5.) Macau
6.) Switzerland
7.) Norway
8.) United States
9.) Brunei
10.) Hong Kong
11.) San Marino
12.) Denmark

So, with these figures, Srilanka is on the top, and in the world, Luxembourg is on top. But we all know the world’s biggest economy is of USA. So, jumping to a conclusion and deciding something is very wrong.
So, to decide the economic growth, we should use another factor known as GDP per capita PPP.

GDP PER CAPITA PPP (Purchasing power Parity)

Former chief economic advisor Arvind Subramanian had then said that the numbers are not comparable. That’s because “market exchange rates are not appropriate for welfare comparisons across time and countries because they may not adequately reflect domestic inflation or productivity growth.

A more reasonable basis is GDP at constant, purchasing power parity exchange rates. This shows India ahead, and despite Covid’s more adverse 22-05-2021 impact in 2020, it is likely to remain so,” said Subramanian.

Why is India behind Bangladesh in per capita income?

So, with these terms, India is Still ahead of Bangladesh. But, due to of government not able to handle the Covid-19 Situation, India is facing these issues and lacking behind Bangladesh in terms of GDP per capita income. Still, it’s not a scary thing that we need to get panic.

The Indian Economy
The Indian Economy

The Indian Economy (Economic Survey 2020-21 & Budget 2021-22 included)

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Uday Singh
In my belief knowledge is the power it can be any form whether it's mental, spiritual, or physical and I try learning as much as can.

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