Bangladesh beats India on Income Per Capita - What does it mean ?

According to reports, Bangladesh has now registered a higher per capita income compared to its neighbor India in the financial year 2020 - 2021. With $2227 income per capita, Bangladesh is now ahead of India by $280 as India's income per capita was reported at $1947 for the last financial year.  

• What is Income Per Capita? 

Income Per Capita is national income divided by population size. This is often used to measure a country's standard of living and purchase power. This is also known as average income. 

This depends on the total national income and population of the country. As per IMF's 2021 estimate, Luxembourg tops the list with $131,782 Income per capita and Burundi at the bottom of the table with $265. India and Bangladesh were ranked at 146 and 151 respectively in 2019 as the list published by the world bank. Whereas Bhutan with a smaller population was ranked at 132.    

• Why it is important?

In 2007 Bangladesh's income per capita was half of India's which has improved drastically. As the whole world is still fighting with Corona Virus a better and improved per capita income directs towards improvement and good leadership. 

• What's Next? 

Bangladesh's growing economy and industrialization have been catching global attention. India, on the other hand, is still struggling to manage covid 19 and although major reforms were announced during the budget this year it will require a commendable implementation to make the $5 trillion GDP dream a reality in a post-pandemic India.