Bangladesh likely to top India's per capita income by 2020
In terms of economic growth and on social development indicators, Bangladesh has gone ahead of India. Bangladesh’s gross domestic product (at current prices) in dollar terms grew at a compounded annual rate (CAGR) of 12.9 per cent, more than twice of India's 5.6 per cent in the three years ending 2016.
In terms of economic growth and on social development indicators, Bangladesh has gone ahead of India. Bangladesh’s gross domestic product (at current prices) in dollar terms grew at a compounded annual rate (CAGR) of 12.9 per cent, more than twice of India's 5.6 per cent in the three years ending 2016, according to a report in Business Standard.
Along with Bangladesh, Pakistan also grew faster than India in the same period at a CAGR of 8.6 per cent. The growth is driven by a surge in investment and export. Over the same period, the Chinese economy expanded at 5.2 per cent annually.
At present, the income growth of Bangladesh is growing at a speed thrice that of India in terms of per capita income. Bangladesh’s per capita income was up 40 per cent in three years against 14 per cent growth in India, and 21 per cent growth in Pakistan at $1,355 in 2016, as per the report.
For 40 years, between 1970 and 2010, India was the top-performing economy in South Asia. The country's annualised GDP growth in terms of dollar was 8.7 per cent 8.7 per cent
In terms of human or social development indicators of infant mortality rate and life expectancy at birth, Bangladesh is ahead of India. In fact, as per the report, a newborn in the country is more likely to experience his/her fifth birthday than that in India or in Pakistan. The life expectancy is also more in Bangladesh than its two neighbouring countries. The average mortality rate in Bangladesh is 72.5 years, whereas it is 68.6 years in India and 66.5 years in Pakistan.
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Bangladesh was able to put itself into the gap created by the slowdown in the Chinese export engine, as policymakers in Beijing shift their focus to pushing domestic demand and investment and away from exports, as per BS report. In 2016, the total export from China has declined to $2.2 trillion from $2.35 trillion three years ago.
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