India vs. Bangladesh: Economic Performance Over the Last Two Decades
India and Bangladesh are among the fastest-growing economies in the world. However, political uncertainties in Bangladesh have raised concerns about whether it can sustain its growth momentum. Here’s how both economies have evolved over the past two decades.
GDP at Current Prices
Data from the International Monetary Fund (IMF) shows that India’s GDP in 2024 stands at $3.94 trillion, nearly nine times larger than Bangladesh’s $455 billion economy.
- Since 1980, India’s GDP has surged over 21 times, growing from $186 billion to its current size.
- In comparison, Bangladesh’s GDP has increased 18 times, rising from $25 billion in 1980 to $455 billion in 2024.
In the last 10 years, India’s economy has expanded 93%, climbing from $2.04 trillion in 2014. Meanwhile, Bangladesh’s economy has grown 120%, rising from $207 billion in the same period.
From 2004 to 2014, India’s GDP grew 188% from $709 billion to $2.04 trillion, while Bangladesh’s GDP saw a 168% increase, reaching $207 billion from $77 billion.
GDP Per Capita at Current Prices
India’s per capita GDP in 2024 stands at $2,731, slightly higher than Bangladesh’s $2,646.
- In 1980, Bangladesh’s per capita income was $311, which was 17% higher than India’s $267 at the time.
- Since then, Bangladesh’s per capita income has increased over 8 times, while India’s has risen over 10 times.
Over the last 10 years, India’s per capita income has grown 75%, from $1,560 in 2014. Meanwhile, Bangladesh’s per capita income has surged 97%, from $1,340 in 2014.
Between 2004 and 2014, India’s per capita income increased 150%, from $624 to $1,560, whereas Bangladesh’s grew 138% during the same period.
General Government Gross Debt (Percentage of GDP)
India’s gross government debt in 2024 stands at 82.5% of GDP, while Bangladesh’s government debt is 41.4%.
- In 2004, India’s debt was 85%, whereas Bangladesh’s stood at 37%.
- From 2004 to 2014, India’s government debt declined from 84.9% to 67.1%, while Bangladesh’s dropped from 37% to 29%.
- However, between 2014 and 2024, India’s debt increased to 82.5%, and Bangladesh’s rose to 41.4%.
Exports
According to World Bank data, India is the 10th largest exporter globally, with total exports valued at $777 billion in 2023.
- In comparison, Bangladesh’s total exports amounted to $57.5 billion.
- This means India’s exports are over 13 times higher than Bangladesh’s.
Bilateral Trade
Data from CMIE reveals that bilateral trade between India and Bangladesh has surged 165% in the last decade, reaching ₹1.07 lakh crore.
- India’s imports from Bangladesh grew 426% over the past decade, reaching ₹15,268 crore in FY24.
- The top imports included readymade garments worth ₹4,932 crore, textiles valued at ₹2,697 crore, and engineering goods worth ₹2,140 crore.
- India’s exports to Bangladesh in FY24 stood at ₹91,614 crore, marking a 145% increase in 10 years.
- Major exports included textile materials worth ₹17,817 crore, engineering goods at ₹16,837 crore, and chemicals & related products worth ₹8,977 crore.
While India’s economy remains significantly larger, Bangladesh has demonstrated remarkable growth in the past two decades. However, rising debt levels and political instability in Bangladesh could impact its economic trajectory. Bilateral trade continues to strengthen, benefiting both nations.
