An article has been published in the South China Morning Post, a Hong Kong-based English daily, presenting a picture of Bangladesh’s socio-economic achievements. The article was written by Syed Munir Khasru, chairman of the Institute for Policy Advocacy and Governance (IPAG). The English translation of the article is as follows:
Ns News Online Desk: Bangladesh has been able to maintain macroeconomic stability since 2009 through prudent financial and debt management as well as investment in social security diversion and infrastructure projects. Economic progress in Bangladesh has been consistent over the last four decades and this trend continues. Bangladesh is ahead of other countries in South Asia in terms of Gross Domestic Product (GDP) growth.
In 2020, South Asia’s average GDP fell by 7.56 percent.
However Worker are constructing Dhaka-Cox’s Bazar railway. Ramu, Cox’s Bazar, AFP, Mega Project (connectivity with China)
the GDP growth in Bangladesh in that year was 3.5 percent. Bangladesh is now ahead of India in various areas such as revenue deficit, trade balance, employment, debt and investment rate in proportion to GDP.
The contribution of general agriculture to the GDP of Bangladesh was one-third. However, between 2010 and 2016, it declined to less than 15 percent of total GDP.
Padma Multipurpose Bridge Complex which may increse GDP 1.5 Mega project.
At the same time, the contribution of industry to GDP has increased from less than one-fifth to one-third. The contribution of manufacturing sector to GDP has doubled since 1980. On the other hand, since the nineties, exports have increased 20 times and exceeded four trillion US dollars. High wage to low wage workers are also contributing to the country’s economy.
In 2019, remittances reached ৬ 1.74 billion. In terms of strong remittances, exports and the welfare of agriculture, Bangladesh is expected to be ahead of India in per capita GDP by 2026. In 2020, India’s per capita GDP fell from thousands 2,096 to 1,929. The size of the economy decreased from 2 lakh 8 thousand crore to 2 lakh 8 thousand crore dollars. In the same year, Bangladesh surpassed India in per capita GDP. With 15 percent growth for 15 consecutive years, the size of Bangladesh’s economy that year was হাজার 35.5 billion. And the per capita GDP is 1 thousand 961 dollars.
Bangladesh’s GDP growth has been increasing in this way since 2004. Earlier, only in 2017, when India’s growth slowed down, Bangladesh went ahead of India. Before the 2008 global recession, Bangladesh’s per capita GDP was half that of India. However, by 2014, it will increase by 60 percent. In 2020, the corona caused 7.3 percent of the Indian economy to shrink.
However, in the same year, the size of Bangladesh’s economy increased by 3.5 percent. The people of Bangladesh are reaping the benefits of this economic progress. Compared to that, India is far behind. As a result of this economic progress of Bangladesh, the living standard of the people of this country has increased, which has had a positive impact on the education and health sectors.
Tunnel to be built under Karnafuli river Mega project
On the other hand, India has made the human development index worse. Especially in the poorer states of the country. An example is the rate of women in the workplace. According to the World Bank, the number of women workers in India was 19 percent last year. In contrast, the number in Bangladesh is 35 percent.
The Indian state of Bihar is struggling to cope with problems such as child marriage and underage pregnancy. In Bihar, 47 out of every 1,000 women die in childbirth. This has had a negative effect on most people. On the other hand, Bangladesh has succeeded in reducing maternal mortality rate by investing in education and women’s empowerment.
In India, measures against black money and known non-income assets in 2016 slowed down economic growth for several years, while digital transactions increased. The sudden withdrawal of Rs 500 and Rs 1,000 notes from the market had a severe adverse effect on the economy at that time. At that time, more than 94 percent of working people in India faced problems.
The ban on banknotes in India has put the common man in a precarious position in purchasing food and fuel on a daily basis and has hampered trade and commerce. Withdrawal of this note overnight is a disaster for the economy. After withdrawing 6 percent of cash overnight, the economy began to slowly collapse.
Bangladesh is now ahead of India in various areas such as revenue deficit, trade balance, employment, debt and investment rate in proportion to GDP. Bangladesh’s human development programs, especially the increase in girls’ education, have led to a decline in birth rates and child marriages.
The size of Bangladesh’s economy has increased almost 260 times in the last 50 years. Bangladesh’s budget deficit is 5 percent or less of GDP. Bangladesh is the second largest exporter of readymade garments in the world. Bangladesh has risen to such a position due to the increase in the number of export-oriented industries.
Most of Bangladesh’s exports are textiles, readymade garments and footwear. However, most of the workers in these industries are unskilled or semi-skilled. Most of Bangladesh’s exports are benefiting from free trade agreements. Due to innovation and low wages, many buyers are choosing Bangladesh over India in the competitive international market. Readymade garments are the main export product of Bangladesh
Bangladesh is India’s sixth largest trading partner. Bilateral trade between the two countries amounted to ৮ 1.6 billion in the fiscal year 2020-21. In the fiscal year 2019-20, the amount of this trade was 950 crore dollars. Trade is growing in the light of the India-Bangladesh Economic Partnership Agreement. However, the trade potential of Bangladesh with India is Roy
South China Morning Post article