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HomeWorldBangladeshis will be richer than Indians by 2030, StanChart Bank says

Bangladeshis will be richer than Indians by 2030, StanChart Bank says

While demographic dividend will be a boon for India, Bangladesh’s investments in health and education should juice productivity, Stanchart says

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The 2020s are set to be the Asian decade, with the continent dominating an exclusive list of economies expected to sustain growth rates of around 7%.

India, Bangladesh, Vietnam, Myanmar and the Philippines should all meet that benchmark, according to a research note Sunday from Madhur Jha, Standard Chartered’s India-based head of thematic research, and Global Chief Economist David Mann. Ethiopia and Côte d’Ivoire are also likely to reach the 7% growth pace, which typically means a doubling of gross domestic product every 10 years. That’ll be a boon to per-capita incomes, with Vietnam’s soaring to $10,400 in 2030 from about $2,500 last year, they estimate.

The South Asian members of the group should be GDP standouts as they’ll together account for about one-fifth of the world’s population by 2030, Standard Chartered reckons. The demographic dividend will be a boon for India, while Bangladesh’s investments in health and education should juice productivity.

The Asian dominance of the list is a change from 2010, when the bank first started tracking the economies it expected to grow by around 7%. Back then, there were 10 members evenly split between Asia and Africa: China, India, Indonesia, Bangladesh, Vietnam, Nigeria, Ethiopia, Tanzania, Uganda, and Mozambique.

China is a notable absence from the latest ranking after being a member of the club for almost four decades — reflecting both a slowdown in economic growth and a progression toward higher per-capita incomes that makes faster growth rates more difficult to sustain. Standard Chartered estimates the world’s No. 2 economy will keep up a 5.5% economic growth pace in the 2020s.

Sub-Saharan African countries also have faded, which the analysts attribute to “waning reform momentum, despite a slowdown in commodity prices.”

While faster economic growth isn’t a panacea — think income inequality, crime, pollution — it tends to come with a lot of positive knock-on effects, Jha and Mann wrote.

“Faster growth not only helps to lift people more quickly out of absolute poverty, but is also usually accompanied by better health and education, as well as a wider range of — and better access to — goods and services,” they say in the report. “Higher incomes resulting from faster growth also usually reduce socio-political instability and make it easier to introduce structural reforms, creating a virtuous cycle.”

In addition, 7% club members tend to have savings and investment rates of at least 20-25% of GDP, according to the report.- Bloomberg


Also read: India vs Bangladesh is the new development model race in South Asia


 

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26 COMMENTS

    • Chamchas don’t want India to develop . Hence proved. Print also Congress chamcha. Used to get prizes from Khangress but BJP not giving much attention to this silly newspaper

  1. This is in per-capita GDP (@ exchange rate). India will be far ahead in per capita GDP (PPP). India is also projected to overtake US as second biggest economy before 2030.

    However this report is an indicator of the languishing BIMARU states. They have produced so excess labour, that we no longer need for anything. Other than that per capita is a useless metric. Yes lot of indians will be poor for a very long time! and this socialist country through reservation and what not will reward those who made huge mistakes like having 4 babies, or not entrepreneurial enough !

  2. Banglades is muslim dominated country but liberal muslims they will set example to pakistani that devlopment canot done by spreading and supporting terorist example is the condition of pakistani cricket team and present bangladesi cricket team, in the process we indian big brother is laking for not being united and one time will not spare anybody reward and punishment both are result of your action be united and work for humanity not for religion or cast jai hind, jay bharat,

  3. This prediction may have been made to fulfill certain hidden objectives, and is too imaginative to be true. Look at Bangladesh now, not a single university among the first 400 in Asia, look at the huge crowd of Bangladeshi patients in any Indian hospital of repute. If this is called significant progress, we should not envy it. Much ado about nothing.

    • You being butthurt will not change the ground reality. Are you telling Bloomberg is also wrong on Vietnam or Philippines too and want certain quarter happy lol? The reason these south east Asian and Bangladesh doing so well because most low cost manufacturing migrating from China to these countries. and it will only speed up as China move to higher value supply chain leaving massive market to capture. Just textile global market alone is close to 650 Billion US dollar. let alone other like foot ware leather toy etc…. This is nothing new China Japan Korea all start with low cost manufacturing and eventually move up. By looking at your comment its apparent you are not graduate from those top 400 universities after all LMAO.

  4. 35 billion dollar repatriation from muslim gulf countries is a big boost to indian economy otherwise more bad news was in store. Hence it also establishes that population is boon too. Sanghis are taking this country bacward in every sense including economically

    • If not the gulf, then somewhere else. There will always be demand for talent.
      Islamic countries are a bane for humanity due to Islam being extremism and terrorism.

  5. Yes. India had visionary leadership from 1947 to 1984 and gave us impressive ‘Hindu growth” of 4% at best. LOL.

    India need leadership that can learn from other people, and not go around lecturing others. what India need is to close down institute like JNUs and used they money save to provide better quality education at low cost, Impose family planning and limit the children to 2 and only 1 to groups that has grown in numbers since Independence compared to national average.

    Other thing needed is to send Hindu secularists, particularly refugees like Ram Puniyani, Sachar, Harsh Mander etc to Pakistan to help our Pakistani brothers build secular Pakistan of Jinnah’s dream, where a person is Pakistani first and Muslim, Hindu or Sikh later. This will bring peace & Prosperity to whole South Asian region.

  6. As children, mother would always tell us, Never mock someone who is less gifted or fortunate. Bahut mazaaq udaya “ termites “ ka. When India and Bangladesh are now spoken of in the same league, the dragon seems a distant prospect. That is what the absence of visionary leadership is costing us.

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