Per capital income of Bangladesh may cross that of India within three years, according to an analysis of the Business Standard (BS).
“Per capita income (in dollar terms) in Bangladesh is now growing at nearly thrice the pace of income growth in India,” said the analytical report published in the Indian business daily on Monday.
“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,” it added.
“At this rate, Bangladesh’s per capita income would top India’s by the year 2020,” the report projected.
It also said that a typical Indian has 25 per cent higher income than a Bangladeshi now while in 2011, Indians earned 87 per cent more.
The Business Standard analysis also mentioned that during 2014 and 2016, Bangladesh’s gross domestic product (at current prices) in dollar terms grew at a compounded annual rate (CAGR) of 12.9 per cent and it was 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,” it added. “The Chinese economy expanded at an annualised 5.2 per cent.”