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Bangladesh beats India in per capita income

The neighbouring country claims average income at $2,227, higher than India’s $1,947 in FY21

Published: 20th May 2021 10:02 AM  |   Last Updated: 21st May 2021 09:54 PM   |  A+A-

Cash; Capital; investment

For representational purposes

By Express News Service

NEW DELHI:  India has technically slipped below Bangladesh in terms of per capita income as the neighbouring country reported its per capita income at $2,227 in the financial year 2020-21— over 9 per cent jump from $2,064 in 2019-20. Latest official data show that India’s per capita income reached $1,947.417, thanks to the sharp contraction in the economic growth due to Covid-19 pandemic and the subseqent nationwide lockdown.

Planning Minister of Bangladesh MA Mannan placed the statistics at a virtual cabinet meeting held with Prime Minister Sheikh Hasina in the chair, reported the national  dailies in Bangladesh. “Our per capita income stands at $2,227 in the fiscal year 2020-21, but the previous fiscal year’s per capita income was $2,064. So, the growth rate is 9 per cent,” the Bangladesh cabinet secretary was quoted as saying.

“It’s merely a temporary phenomenon. Bangladesh is more a destinationation of labour intensive exports but that can’t keep on driving the growth engine faster than India’s. Once the pandemic recedes these will crank up growth. I would put it as more of a statistical anomaly and of course India shooting on its feet with some useless policies. But this will come to pass,” an economist working with a foreign financial service firm said on the condition of anonymity.

When the World Economic Outlook data was released by the International Monetary Fund in October last year, it had also projected Bangladesh to surpass India in terms of per capita GDP (at current prices) in dollar terms in 2020. That time, too, it had sparked a row.

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 and/or productivity growth. More appropriate basis is GDP at constant, purchasing power parity exchange rates. This shows India ahead and despite Covid’s more adverse impact in 2020, it is likely to remain so,” said Subramanian.

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Comments(5)

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  • Economist

    When comparing the two countries
    28 days ago reply
  • coimbatore venkatgiri vedavyasan

    great .....the bottomline :::: we are no where ... simply hollow talk by so-called economic experts.
    1 month ago reply
  • Zafrul Siddique

    What about India's economic growth engine? Is it Capital intensive? It's not too far away that Bangladesh's Economic performance will beat India's consistently by any measure!
    1 month ago reply
  • S. A. Jafar

    Bangladesh financial achievement no way comparable with India where India is one of the largest economy of the world ranked within 10 while Bangladesh is below 100. What needs to be appreciated is our growth from where we started and where we are today. If our economy is cheap labour based I would say every country today in the top of economy were labour intensive initially. Today Bangladesh is labor intensive tomorrow it will industrial based economy. India should pay more attention to their own flaws rather than indicating or comparing Bangladesh. As a neighbouring country we Bangladeshi would like to see India grow to a one of the top country.
    1 month ago reply
  • PooPatel

    "It’s merely a temporary phenomenon" The same thing said by Pakis in 2016
    1 month ago reply
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