Bangladesh set to overtake India in per capita GDP | BOOM | IMF report

The IMF has said that India is set to slip below Bangladesh in per capita GDP. Bangladesh will be up 4% than India. What does this mean for Indian economy and what can it potentially lead to? BOOM Explains.

Madan Sabnavis, Chief Economist, CARE Ratings says that IMF Report clearly says that India is one of the worst performing economies globally. The lockdown has had a very negative effect on the economy which gets reflected in the numbers that the IMF, RBI and World Bank are citing. In retrospect it is easier to say we shouldn't have announced a lockdown so soon but it was the sensible thing to do at the time in March.

He also says that when GDP comes down, it encapsulates loss of investments, income, jobs and spending coming down. Even if we grow at 8.5% or 9%, the Indian economy will still go back to 2019 levels. The prospects of consumer demand rising are still low.

Watch BOOM's Govindraj Ethiraj interview Madan Sabnavis on the 5 trillion economy India wants to be and the current economic scenario in India.