Suryaa News Desk: A recent report released by the International Monetary Fund (IMF) comparing the per capita income (GDP per capita) of India and Bangladesh has led to widespread discussion. Economic experts have noted that Bangladesh, a smaller neighboring nation, has seen rapid development, resulting in its per capita income either surpassing or nearing that of India. This trend has emerged despite Bangladesh currently facing challenges such as political protests, movements, high inflation, and economic crisis.
Bangladesh has established a strong economic foundation by utilizing its labor force, particularly women, to become the world's second-largest exporter of textile products. Per capita income is calculated by dividing a country's total GDP by its population. Bangladesh’s effective population control policies have slowed its population growth rate, which, combined with a fast GDP growth rate, has resulted in higher per capita income figures. Conversely, while India is one of the world's largest economies by total GDP, its vast population and income inequality contribute to a lower average per capita income.
Bangladesh’s economic strategy has focused heavily on exports, with textile exports accounting for over 80 percent of its total exports. Global brands have been attracted to Bangladesh due to low-cost labor, government incentives, and flexible customs regulations. In contrast, India faces higher production and internal transportation costs, making it difficult for its textile industry to compete internationally.
The current situation in Bangladesh also serves as a warning regarding the risks of over-reliance on a single sector. A lack of balance across different sectors of the economy leaves a nation vulnerable to international market fluctuations. For India to fully utilize its economic potential, it must strengthen the integration between the manufacturing, service, and agricultural sectors.
To improve per capita income, experts suggest that India should promote manufacturing and export-oriented industries, provide training to its rural and industrial workforce, and increase women's participation in the economy. Additionally, supporting small and medium-sized enterprises through tax relief, reducing regulatory burdens, and improving infrastructure such as ports and roads to lower transportation costs are identified as key policy areas.