Media prime times have been flooded with NRC (Nation Register of Citizens) where the spokespersons of the government claim that it is a move to protect the right of original Indians. Some right-winged politicians were thumping their chests over sending back Bangladeshi people to their homeland. However, amidst all these chaos and protests, Bangladesh has slowly crept to the top spot and replaced India to become the fastest rising economy in South Asia.
India was leading the GDP starts till 2016 but the rapid unemployment, inflation, and unprecedented economic crisis in the country have sent India back to where it all started. In 2016, India’s GDP was strongly moving upwards at 8.2% whereas the GDP of Bangladesh was just beginning to consolidate at 7.1%. After that, India’s GDP fell consistently and we all know the new low of 5% that it has hit now. Whereas Bangladesh’s GDP has been constantly rising from 7.1% in 2016 to 7.3% in 2017 and when it hit 7.9% in 2018 it emerged as a clear winner as India’s GDP growth rate fell to 7% in that year.
In 2019, the GDP growth rate of Bangladesh is forecasted to be around 8% whereas some economists also say that it might be up to 8.1%. We all know the story back here in India where people are losing their jobs and every sector from agriculture, automobile, real estate, etc. are witnessing a historic low.
India achieved significant growth in the economy with the help of service-based companies whereas Bangladesh has always been an industry-led economy. The garment industry of Bangladesh accounts for 80 percent of its economy whereas the service sector has contributed up to 60 percent of revenue in the economy of India.
A good point to note here is that industries have a much higher capacity of absorbing labor as compared to the service sector. Therefore, we can see why unemployment has been the issue even with the steady rise of the economy since 2000. As people in Bangladesh celebrate their new victory, people in India are under constant panic due to NRC, demonetization, and other ‘so-called’ reforms.
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Is this the rising India that we all wished for? Has India lost its development track or is it just a cyclical impact is the question which only time can answer. However, we must admit that our economic measures need quick and effective reformative measures. Also, India must focus on the manufacturing sector more as it has the capacity of generating employment on a large scale which will enhance the consumer demand in the country.