Pattern and Sources of Economic Growth, comparison between Bangladesh and India. Introduction: GDP (Gross Domestic Product) is indicator of a nation’s economic Growth- Measured by the market value of all officially recognized final goods and services produced within a country in a given period. Through GDP growth we can measure the economic growth, especially very much useful indicating tools for measuring growth in the least developed countries (LDCs), like Bangladesh, Haiti, Samoa, Afghanistan, Sudan, Zambia etc. these countries have the instability of agricultural production; the instability of exports of goods and services; the economic importance of non-traditional activities (share of manufacturing and modern services in GDP); merchandise export concentration; and the handicap of economic smallness. India is a Middle Income Level Country (Listed as in WB Report) aand also a developing nation, though some socio-economic variables not agree with this argue for India. On the other hand Bangladesh is Least Developed and Low Income Country according to the definition of World Bank. Before ‘90s India also suffer low income, they also suffer same sort of economic crisis what Bangladesh is/was faced and then India overcome from that in late ’90, through gradually increased per capita GDP and maintain a constant healthy GDP growth over last few (1998 to 2010) year (about 7%-11%) which is reached them to a Developing Economy. Where Bangladesh still suffer the several economic crisis, due to inefficient production, technology, man power result in low production, lower per capita GDP, GDP growth less than 6% etc. the following figure shows the comparison of GDP growth of Bangladesh and India last 25 years (1986 to2010).
The two figures show GDP Growth Pattern over 25 years (1986-2010) of Bangladesh and India. (According to the ADB country report of 2011) The comparative figure between India and Bangladesh shows GDP growth in India is more zigzag and volatile than Bangladesh before 2000 but maintain a constant growth rate over 7.5% after 2003 and as a result they have got a secure economic growth while growth rate of GDP is quite smoother than India but never reached in between 1985 to 2010 over 7% along with other contemporary economic crisis and pressure of large population.
Pattern and Sources of GDP Growth India and Bangladesh:
India economy is very large, about 1182 million of people b (2010) depends more on internal production sector than import. On the other side Bangladesh is small open economy and mostly depend on import rather own production, so the world economic crisis along with the internal crisis also affect the Bangladesh economy more than India Economy. So the size of GDP is not comparable but we can compare the percentage of GDP variable (Income Side) of these two countries. The following figure illustrates the structure of output of last 25 years.
The picture shows the comparative depict of Bangladesh and Indian production contribution on GDP from 1986 to 2010. We see Both India and Bangladesh tremendously depends on Service sector. At early ‘90s about 50% Bangladeshi GDP contributed by the Service sector and the scenario is not changed for Bangladesh, still Service Sector is about 52% of GDP now in 2010. But India depends less than 40% from 1986 to 1992. And India depends almost same on service, agriculture and industrial sector, then at mid of ’00 decade Indian GDP tends to Service Sector more and they reduce their dependency on from both Agriculture and Industry sector. So it is easy to conclude that the Growth in GDP is occurred through the Service Sector development in the Indian Economy. On the other hand, flourish in the RMG sector rapidly in Bangladesh after 1991 the labour forces from agro sector had switched in the Industrial sector, as a result contribution of Agriculture Production falls according with rise of Industry Sector. Growth in India accelerated significantly in the 1980s...
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