New Delhi: The International Monetary Fund (IMF) has projected that Bangladesh is set to overtake India in terms of per capita Gross Domestic Product (GDP) in 2020-21.
According to the IMF's World Economic Outlook (WEO) report, India's per capita GDP is likely to slump 10.5 percent to $1,877 — the lowest in four years — due to the lockdown imposed to contain the coronavirus.
Bangladesh is expected to see its per capita GDP in dollar terms to grow by four percent to $1,888. It may be noted that the GDP figure for both countries is at current prices.
It needs mention here that India reported a 23.9 percent GDP contraction in the first quarter of the calendar year.
Remarkably, India was one of the top performers in terms of per capita GDP growth a few years ago. However, If the IMF's projection turns out to be accurate, it will become one of the worst performers in terms of growth in the entire South Asian region.
If the projection does come true, India will become the third-poorest in South Asia, just above Pakistan and Nepal, which are set to report a lower per capita GDP.
Apart from Bangladesh, Bhutan, Maldives, and Sri Lanka are also set to outpace India's per capita GDP in 2020-21.
It needs mention here that the IMF's growth forecast at 10.5 percent in 2020-21 is gloomier than the projections given by the Reserve Bank of India at 9.5 percent and the World Bank at 9.6 percent.
According to the IMF's report, India's per capita GDP contraction will be the third sharpest fall in the world after Spain and Italy.