The International Monetary Fund has said that the Indian economy, severely hit by the coronavirus pandemic, is set to shrink by a massive 10.3% this year. Worse, according to the IMF projections, India’s per capita GDP is likely to fall below Bangladesh. This effectively means that India would destroy the 40% advantage over its tiny neighbour within a span of six years.
According to the World Bank data, India’s per capita GDP in 2014 stood at $1573.881 when Narendra Modi won a historic mandate to form a new government. Bangladesh’s per capita GDP at the same time stood at $1118.854.
According to IMF’s ‘World Economic Outlook’ report, India’s per capita GDP is set to nosedive to $1,877 against current $2104 by the end of this financial year. Bangladesh per capita GDP, on the other hand, is expected to grow to $1,888 from its current $1855.
In other words, India under the Modi government has destroyed its 40% advantage over Bangladesh in terms of per capita GDP.
Reacting to the news, Congress MP Rahul Gandhi tweeted, “Solid achievement of 6 years of BJP’s hate-filled cultural nationalism: Bangladesh set to overtake India.”
Solid achievement of 6 years of BJP’s hate-filled cultural nationalism:
Bangladesh set to overtake India.
— Rahul Gandhi (@RahulGandhi) October 14, 2020
India’s economic slump is likely to the worst among the main emerging markets.
Gita Gopinath, the Chief Economist of the IMF, said, “This crisis is however far from over. In our latest World Economic Outlook, we continue to project a deep recession in 2020. Global growth is projected to be -4.4 percent, an upward revision of 0.8 percentage points compared to our June update.”
The IMF, however, said that the swift recovery in China had surprised on the upside while the global economy’s long ascent back to pre-pandemic levels of activity remained prone to setbacks.