Bangladesh Growing Faster than India – Free PDF Download

1947 – BIRTH OF TWO NATIONS

 THE SITUATION IN 2019

• The economic growth rate in Pakistan will be 2.8% — the lowest in South Asia — and the inflation rate will be 12% — the highest in the block of eight nations — in this fiscal year, the Asian Development Bank (ADB) projected.
• The Asian Development Bank slashed its projection for India’s economic growth in the ongoing fiscal year from 7% to 6.5%

 WHAT YOU SHOULD KNOW

• India’s growth of real GDP has been high with average growth of 7.5 per cent in the last 5 years (2014-15 onwards).
• The Indian economy grew at 6.8 per cent in 2018-19

BANGLADESH

• Bangladesh is likely to be the fastest growing economy in Asia in the ongoing fiscal year, with growth expected to be 8%, the ADB said.
•  Since 2016, Bangladesh has been growing at over 7 per cent and this financial year will see it cross the 8 per cent threshold as well – a mark it is expected to hit again next financial year, according to ADB estimates

TARGETS AHEAD

• Bangladeshi Finance Minister AHM Mustafa Kamal on said the country’s economy looks set to clock double-digit growth in the next five years. Bangladesh’s economy grew 8.13 percent this fiscal year, the highest in its history,

BANGLADESH BEATING INDIA AND PAKISTAN

• If it keeps this burning pace through the 2020s, according to CEO Standard Chartered Bangladesh Naser Ezaz Bijoy, its per capita income may even top India by 2030.

WHAT DISTINGUISHES BANGLADESH?

• The structure of Bangladesh’s economy is quite different from India’s. Unlike India, where the services sector contributes overwhelmingly while industry’s contribution is much lower than desired

BANGLADESH MODEL

• This allows its economy to create jobs. In India, by contrast, the bulk of the population is still stuck in the agriculture sector, which contributes the least to the GDP. The industrial sector, which has the maximum potential to absorb surplus labour from agriculture, is struggling to grow fast enough and create employment.

BANGLADESH EXPORTS

• It is the strength of Bangladesh’s domestic industries that, despite the trade war between global superpowers the US and China intensifying over the past year, Bangladesh’s exports have grown from 6.7 per cent in 2018 to 10.1 per cent in 2019.

WHAT MAKES BANGLADESH — A HUB OF GARMENT MANUFACTURING?

• Bangladesh is the world’s second largest Readymade Garment (RMG) exporter, just behind China.
• Country’s 81% of exports come from the RMG sector, and the textile and Apparel sector contributes around 20% to Bangladesh’s GDP. It employs around 20 million people in the country and is the major driving force of the country’s economy.

 ANALYSIS

• Bangladesh plans to get the middle-income country status by 2021, and RMG sector is going to play a major role in it. Bangladesh has set itself a target of achieving apparel exports worth $50 billion by 2021, and it seems to be on the right track.

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