new Delhi: Former Economic Advisor Arvind Subramanian said that Bangladeshis has not surpassed India nor is it expected in the near future if we look at the appropriate economic parameters.
He said that in order to estimate the general level of welfare of the people in a country, per capita income is estimated by only one indicator.
This topic is under discussion after a report by the International Monetary Fund. It has been estimated in the report that Bangladesh may overtake India in terms of per capita income in the current fiscal year affected by Kovid 19.
Former Congress president Rahul Gandhi, while citing a recent report by the IMF, took a jibe at the Modi government saying, “This is the six-year concrete achievement of the BJP government… hate-filled cultural nationalism.”
Government sources say that India’s gross domestic product (GDP) in 2019 was 11 times that of Bangladesh in terms of purchasing power parity (PPP).
In a series of comments on Twitter, Subramanian said that (after the Global Economic Outlook report of the Monetary Fund came out), concern and gimmick has started about the comparison between India and Bangladesh on per capita GDP. He said, ‘Of course not, India has not lagged behind on more appropriate criteria and according to the Monetary Fund there is no possibility of this happening in the near future.’
He said that in this debate only by comparing the per capita income at the current exchange rate, it is being concluded that Bangladesh has dominated India, but the market’s exchange rate is a reasonable measure of the measure of the average welfare level in every country. does not live.
He said that in order to estimate the general level of welfare of the people in a country, only one indicator is estimated per capita income among all the indicators.
He said that the need is to assess the GDP in local currency and note the effect of inflation in it. Estimated real GDP based on local currency should be calculated in terms of comparable dollars.
He said that it would be more appropriate to use a purchasing power parity (PPP) based exchange rate at a constant price to compare GDP.
He said that there is no resting opportunity for India. The country will now be able to reach the first level of Kovid 19 in 2022. That means a loss of three years.
The Monetary Fund report states that due to an estimated contraction of 10.3 per cent of GDP in the current financial year, India may go below Bangladesh per capita GDP.