Bangladesh: After trailing its big neighbour for four decades, Bangladesh has gone ahead of India in economic growth and on social development indicators.
In the three years ending 2016, 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 India’s 5.6 per cent. Over the same period, Pakistan grew faster than India too, at a CAGR of 8.6 per cent, driven by a surge in investment and export. The Chinese economy expanded at an annualised 5.2 per cent.
As a result, per capita income (in dollar terms) in Bangladesh is now growing at nearly thrice the pace of income growth in India. At $1,355 in 2016, 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 this rate, Bangladesh’s per capita income would top India’s by the year 2020. Currently, a typical Indian has 25 per cent higher income than her eastern neighbour; in 2011, Indians earned 87 per cent more.
India was the top performing economy in South Asia for the 40 years between 1970 and 2010. Annualised GDP growth of 8.7 per cent in dollar terms at current prices against Bangladesh’s 7.6 per cent and Pakistan’s 6.7 per cent. (See the adjoining charts)
