Bangladesh Set to Surpass India in Per Capita GDP: IMF

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Bangladesh is projected to surpass India in per capita gross domestic product (GDP) in 2026, although India is expected to retain a much larger overall economy, according to the International Monetary Fund (IMF).

The IMF’s World Economic Outlook, released in October, estimates Bangladesh’s per capita GDP at $2,886 in 2026, compared with $2,749 for India.

Bangladesh previously overtook India in per capita GDP in 2020, before India regained the lead in subsequent years.

Despite the projected milestone, a substantial gap remains between the two countries in terms of overall economic size and capacity.

India’s total GDP is projected to reach $4.15 trillion in 2026, roughly eight times Bangladesh’s estimated $506.4 billion.

Per capita GDP is calculated by dividing a country’s total economic output by its population. It is an average economic indicator and does not represent the income each individual actually receives or directly reflect how income is distributed across society.

Over the past two decades, Bangladesh has made significant economic progress, driven largely by its ready-made garment (RMG) sector, strong remittance inflows and increased female participation in the labour force.

However, the country’s economic momentum is facing pressure from high inflation and a slower growth trajectory.