Telangana CM KCR during his press meet said that Bangladesh is taking over India in terms of GDP and soon Nepal’s GDP will be more than India’s GDP.
Lets look at the facts !
We should use the right terminology when it comes to Economy, the term we need to discuss is per Capita GDP.
GDP = Value of Total Goods and Services produced in a year
Per Capita GDP = Total GDP / Total Population
GDP Numbers :
India GDP : 2610.00 USD Billion (2020 Est.)
Bangladesh GDP : 275.00 USD Billion (2020 Est)
Nepal GDP : 27.50 USD Billion (2020 Est)
Sri Lanka GDP : 82.00 USD Billion ( 2020 Est)
What did IMF Say ? World Economic Outlook report released by the IMF recently, while Bangladesh’s per capita GDP in dollar terms is expected to grow by 4 per cent this year to $1,888, India’s per capita GDP is expected to decline 10.5 percent to $1,877
Its only one Indicator : GDP per capita is only an estimate for one indicator of the average standard of living or welfare in a country. There could be several other indicators of the standard of living in the country like the human development index, for example.
Domestic inflation is not factored in the IMF calculation.
How Many methods are there to calculate the same ? IMF has three ways of doing this, while the World Bank has four.
What else India are doing good at ? Purchasing power parity (PPP) exchange rates, even as GDP is kept constant. Using this metric, India is ahead of Bangladesh, and despite the coronavirus-induced lockdown and its effect, will probably remain so.
In just one year India has added roughly Rs 58 Lakh crore to the Total Market capitalisation which is equivalent to 3 times the GDP of Bangladesh.
- In April – August 2020 : Total FDI Inflow to India was 35.73 Billion. 13 % Higher than same period last Fiscal.
- FIIs have poured over Rs 38,000 crore into Indian equities in November.
- Important Point Missed in IMF Report : However, India’s per capita GDP in dollar terms is expected to grow 8.2% at $2,030 in 2021, compared with an expected 5.4% growth for Bangladesh at $1,990
- From 2004 to 2019 – India’s population grew faster (around 21%) than Bangladesh’s population (just under 18%).
India vs Bangladesh : Other Metrics
Conclusion : Just for Politics, we should not demean our great Nation. We want our neighbour’s to do well and compete with us. But Saying Bangladesh is beating India is a bit too much.