IMF said - Bangladesh's per-person GDP is 0.6% higher than India, the impact of lockdown on Indian economy, the road ahead is also challenging

Posted on 14th Oct 2020 by rohit kumar

Bangladesh's capita (per capita) GDP is more than the capita GDP of India, which is counted in backward countries. The International Monetary Fund (IMF) has given this information. The IMF has stated that per capita GDP in Bangladesh is $ 1,888 (about Rs. 1,38,400), while in India it is $ 1,877 (about Rs. 1,37,594).

 

The IMF has also said that India will be ahead in this in 2021. In 2021, the per capita GDP in India will be one lakh 48 thousand 190 rupees, while the GDP of the people of Bangladesh will be one lakh 45 thousand 270 rupees. Right now India has one lakh 37 thousand 21 rupees while Bangladesh has one lakh 37 thousand 824 rupees per capita GDP. This figure is based on 73 rupees on one dollar.

 

First-quarter results have impacted

The IMF has said that the first-quarter results have adversely affected India's economy. It seems that in the coming days, its difficulties are not going to reduce. The road ahead for India's economy is quite challenging. A look at the IMF's World Economic Outlook looks like this. According to the IMF report, the country's condition is going to be worse than Bangladesh. It's per capita GDP will also fall below Bangladesh and this is the effect of the lockdown.

 

GDP has dropped 10% this year

 

This year India's per capita GDP has dropped by 10%. Whereas Bangladesh has a per capita GDP growth of 4 percent. In terms of per capita gross domestic product (GDP), India was far above Bangladesh until a few years ago. But due to rapid exports in the country, its growth has changed significantly. Also, during the intervening period when India's savings and investment were very sluggish, Bangladesh won it.

 

India will stay ahead of only Pakistan and Nepal

If the IMF estimates are correct, then India will be able to stay ahead of only Pakistan and Nepal in terms of GDP in its 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, Nepal and Bhutan's economies are expected to grow this year.

 

IMF's estimate is higher than RBI's estimate

The IMF's estimate for India is worse than the RBI's estimate of 9.5%. It is also disappointing compared to the World Bank's earlier estimate. The World Bank has predicted a 9.6% decline in India's GDP in FY 2021. The report said that India's decrease in GDP by 10.3% is the third-highest decline in the world after Spain and Italy.

 

Biggest fall

The IMF said in the report that this would be the biggest decline between developing countries and emerging economies. The IMF has said in the report that emerging economies other than China will see a deficit of 5.7 percent in 2020. The report has also highlighted the risk of spreading the virus in countries like India and Indonesia. The economies of these countries depend on the most affected sectors such as tourism and commodities.

 

Greater decline than in 1990–91

The data accompanying the report stated that in 2020 the Indian economy may be the most affected since the 1990–91 crisis. 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 also accelerate in 2021 which will once again put India ahead of Bangladesh in per capita gross domestic product (GDP).