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https://www.newindianexpress.com/business/2021/may/20/bangladesh-beats-india-in-per-capita-income-2304942.html

 

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.

 

Bangladesh is rising sharply economically for a young state.  But will they be able to maintain it?  Biggest hurdle will be overpopulation in my view. 

Posted

I am against illegal immigration and all but with no resources they have increased their per capita and Indians are following behind. Someone needs to question what is working and what is not.

Posted

Curious to know in which category they beat India.  Middle class population is very high in India. 600 million people. That is almost 50%  of total population.  With Bangladesh only 20% of the population falls under this category.  About 40 million roughly.  Even in the below poverty line Bangladesh has more percentage.

Posted (edited)
41 minutes ago, vvvslaxman said:

Curious to know in which category they beat India.  Middle class population is very high in India. 600 million people. That is almost 50%  of total population.  With Bangladesh only 20% of the population falls under this category.  About 40 million roughly.  Even in the below poverty line Bangladesh has more percentage.

Bangldesh is classed in some category where by world powers are not supposed to put tarrifs on their produce. That along with other benefits in that classification can do wonders. But such data is most likely to be used by West and stop those benefits including tarriff 

Edited by mishra
Posted (edited)

The main reason according to me is they have developed their manufacturing sector in very effective way especially in the field of Textile industry. Bangladesh is second largest textile exporter in world after China so you can see easily how much they have focused on their manufacturing sector ,these sector provide job to all kind of people from low educated to highly educated but in INDIA scenario is different we have focused more on developing IT sector rather than manufacturing sector IT sector requires qualified professionals or atleast graduates. 

Edited by Lone Wolf
Posted
2 hours ago, vvvslaxman said:

Curious to know in which category they beat India.  Middle class population is very high in India. 600 million people. That is almost 50%  of total population.  With Bangladesh only 20% of the population falls under this category.  About 40 million roughly.  Even in the below poverty line Bangladesh has more percentage.

 

They are still behind in per capita income ppp

 

Purchase power parity. If you account for cost of living etc

 

Re middle class you are confusing wealth and gdp. They are correlated but not the same thing.

 

Gdp is the output produced per year. 

 

Lets say we have two countries

 

Country A gdp in 5 years

 

100, 100,100, 100,100 cumulative 500

 

Country B gdp in 5 years

 

60, 70, 80,95, 105 cumulative 410

 

So in the 5th year gdp of country A is less than B. But historically the output of country A is more than B over a 5 year period.

 

 

 

 

 

 

Posted
1 hour ago, Lone Wolf said:

The main reason according to me is they have developed their manufacturing sector in very effective way especially in the field of Textile industry. Bangladesh is second largest textile exporter in world after China so you can see easily how much they have focused on their manufacturing sector ,these sector provide job to all kind of people from low educated to highly educated but in INDIA scenario is different we have focused more on developing IT sector rather than manufacturing sector IT sector requires qualified professionals or atleast graduates. 

 

 

China sustained their exports by devaluing the yuan against the usd. Truth is bd rising nominal GDP is going to make them uncompetitive pretty quickly against likes of loas or mynamar.

 

From this point they need to diversify export base.

 

But at the same time we need to commend them for growth and improving hdi parameters. If they continue to grow like this for another decade absolute poverty will be over. 

 

 

Posted
1 hour ago, G_B_ said:

 

They are still behind in per capita income ppp

 

Purchase power parity. If you account for cost of living etc

 

Re middle class you are confusing wealth and gdp. They are correlated but not the same thing.

 

Gdp is the output produced per year. 

 

Lets say we have two countries

 

Country A gdp in 5 years

 

100, 100,100, 100,100 cumulative 500

 

Country B gdp in 5 years

 

60, 70, 80,95, 105 cumulative 410

 

So in the 5th year gdp of country A is less than B. But historically the output of country A is more than B over a 5 year period.

 

 

 

 

 

 

Country B has a positive slope whereas country A is flat. And that is the problem with current economic model.

Posted

Many Indian companies have built manufacturing facilities of various products in Bangladesh. That is because Pakistan is not preferred by industrialist due to multiple reasons which can affect business. Bangladesh has cheap labor as well as a huge market for consumption as well from these factories set up by Indian industrialists. This has provided more job opportunities to Bangladeshi people as well as helped Indian industrialists expand their reach and improve their topline due to mass population as well as improve bottomline due to cheap labor. The exports are also done from these facilities. Foreign countries also prefer to set up plants in India as well as Bangladesh rather than other Asian nations like SriLanka and Pakistan. All of these factors are helping Bangladesh economy.

Posted
19 hours ago, Khota said:

Country B has a positive slope whereas country A is flat. And that is the problem with current economic model.

 

Well thats very true.

 

You can say substitute country A with italy and country B with south korea.

 

India is growing at around 6 to 7% bd has grown by 9% last decade. (2010 to 2019). But a higher base effect means india has maintained a health lead in ppp per capita.

 

The nature of bd growth is labour intensive. In india thats not the case. So their hdi parameters have improved dramatically last decade. India has a lot of standard deviation. Gdp ppp per capita ranges from 12000 in karnataka to 2800 in Bihar.( in big states)

 

Bd i think their poorest region has gdp ppp per capita of $3500. 

 

So as far as poverty reduction goes bd will do much better than india in the coming decade unless the likes of up jharkhand assam and bihar grow at 8% or more

 

 

 

 

 

 

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