India is set to drop below Bangladesh in terms of per capita Gross Domestic Product (GDP) as the economy, according to the International Monetary Fund, is projected to contract by a massive 10.3 per cent this year. The IMF’s forecast for India, a huge downward revision from its previous prediction in June, will see the biggest contraction among major emerging markets amid the coronavirus pandemic.
According to the IMF’s ”World Economic Outlook” report released on Tuesday, India’s per capita GDP is set to plunge by 10.3 percent to $1,877 this fiscal year ending on March 31, 2021. The IMF’s previous prediction in June said output would shrink 4.5 percent. Bangladesh per capita GDP in dollar terms is expected to grow 4 per cent in 2020 to $1,888, according to the IMF report.
However, India, Asia’s third-largest economy, is likely to bounce back with an impressive 8.8 per cent growth rate in 2021, thus regaining the position of the fastest growing emerging economy, surpassing China’s projected growth rate of 8.2 per cent, the IMF said.
Released ahead of the annual meetings of the IMF and the World Bank, the report said global growth would contract by 4.4 per cent this year and bounce back to 5.2 per cent in 2021.
Top Congress leader Rahul Gandhi, who has been critical of the centre over the state of the economy, hit out at the government after the IMF projections. “Solid achievement of 6 years of BJP’s hate-filled cultural nationalism. Bangladesh set to overtake India,” he tweeted today.
India’s projected slump is the largest of any major economy except for Italy and Spain, and the biggest among the main emerging markets.
Among the other countries in the BRICS group, Brazil’s economy will contract 5.8 per cent, Russia 4.1 per cent, South Africa 8.0 per cent while China will grow 1.9 per cent, according to the IMF’s report.
(With inputs from PTI and AFP)