divergent dev. of india and ban. prepared by alamgir, jnu

7/31/2019 Divergent Dev. of India and Ban. Prepared by Alamgir, JnU

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Mohammad Alamgir HossainBBA (Finance), Session: 2007-08

Jagannath University, Dhaka

IntroductionThe Economy of India is theninth largestin the world bynominal GDPand thethird

largestbypurchasing power parity(PPP).

TheeconomyofBangladeshis a rapidlydevelopingmarket-based economy. According to

theInternational Monetary Fund, Bangladesh ranked as the43rd largest economyin the

world in 2010 in PPP terms.

India and Bangladesh Economy at a glance

Economic variables India BangladeshRank 9th (nominal GDP) 45 (nominal GDP)

Currency 1 Indian Rupee Bangladesh Taka (BDT)

Trade organizations WTO, SAFTA, G-20 andothers

WTO, WCO, IOR-ARC,SAFTA, D8

StatisticsGDP growth 8.4% (201011) 6.3% (2011 est.)

Inflation (CPI) 6.55% (January 2012) 10.7% (2011 est.)

Unemployment 9.8% (2011 est.) 5% (2011 est.)

Ease of Doing BusinessRank

132nd (2011) 122nd (2011)

Growth

With its average annual GDP growth rate of 5.8% over the past two decades, and reaching8.4% during 2010-11, India is one of theworld's fastest-growing economies. Until 1991, all

Indian governments followedprotectionistpolicies that were influenced by socialist

economics.

With its average annual GDP growth rate of 4.95% over the past two decades, and reaching

6.3% during 2010-11. Due to obstacles to growth include frequent cyclones and floods,

inefficient state-owned enterprises, mismanaged port facilities, an inefficient use of energy

resources Bangladesh is far behind of India.

Poverty

Poverty is widespread in India, with the nation estimated to have a third of the world's poor.

According to a 2005 World Bankestimate, 41.6% of the total Indian population falls below

the international poverty line of US$ 1.25 a day.

Bangladesh is one of the worlds poorest countries. With the help of international assistance,

there has been a declining trend of poverty by 1% each year since 1990s. However, they are

unable to escape from extreme poverty, as the data from World Bankfound that there is still

40% of the population to be below the national poverty line in 2005 but that is better than

India.

Education and literacyIndia
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Education in India is provided by thepublic sectoras well as theprivate sector, with control

and funding coming from three levels:federal,state, andlocal.

The educational system in Bangladesh is highly subsidized. The governmentofBangladeshoperates many schools in the primary, secondary, and higher secondary levels.

Now-a-days privately owned educational institutions also rising.

Educational Statistics at a glance

Particulars India BangladeshNational education budget (2006)

Budget US$11.45 billion US$7.7 billion

Literacy (15+)

Total 74% 43.1%

Male 82% 53%

Female 65% 35%

HealthHealth sector in India is the responsibility of the state, local and also the central government.

But in terms of service delivery it is more concerned with the state.

Although Bangladesh had a basic health care infrastructure in the 1980s, much remained to

be done, particularly in rural areas, where the majority of the people faced critical health

problems.

Variables India Bangladesh

Access to sanitation 72% Ranked 77t 112% more

than Ban.

34%, Ranked 113rd

Drug access 0% Ranked 152n 50% Ranked 101st

Hospital beds per 1000people

0.79 0.31

Infant mortality rate 57.92 Ranked 44t 64.32 Ranked 40t 11% morethan India

Malaria cases per 100000 7 Ranked 81st 40 Ranked 67t 5times morethan india

Maternal mortality 540 Raned 19t 54% morethan Ban.

350 Ranked 35t

Physicians per 1000 people .60 Ranked 19t in 2004131% more than Ban.

0.26 Ranked 32n in 2004

Total expenditure on healthas % of GDP

6.1% Ranked 89t 97% morethan Bangladesh

3.1% Rankes 175t

Water availability 1880 cubic meters Ranked123rd

8809 cubic meters Ranked70th 4 times more than India

Human Development Index

Human Development Index (HDI) for India in 2007 was 0.619 on the basis of which India is

ranked 120 out of 182 countries of the world placing it at the same rank as in 2006. The value
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of Human Development Index for India gradually increased from 0.427 in 1980 to 0.556 in

2000 and went up to 0.619 in 2007.

The Human Development Index (HDI) for Bangladesh in 2007 was 0.547 on the basis of

which Bangladesh is ranked 140 out of 182 countries of the world placing it at the 137 rank

as in 2006 which has been deteriorate. The value of Human Development Index forBangladesh gradually increased from 0.257 in 1980 to 0.499 in 2000 and went up to 0.547 in

2007.

PopulationThe demographics of India are inclusive of the second most populous country in the world,

with over 1.21 billion people (2011 census), more than a sixth of the world's population.Bangladesh has the 2nd highest population density in the world. According to the World

Bank population in Bangladesh increased from 1990 to 2008 with 44 million and 38 %

growth in population compared to 34 % growth in India . Bangladesh had high rates of

population growth in the 1960s and 1970s.

Variables India Bangladesh

Population: 120 crore (2nd) 16 crore

Growth

rate:

1.41% (2011 est.) (93rd) 1.566% (2011 est.)

Birth rate: 22.22 births/1,000 population (2009

est.)

24.68 births/1,000

population (2009 est.)

Death rate: 6.4 deaths/1,000 population (2009

est.)

8 deaths/1,000

population (2009 est.)Life

expectancy:

69.89 years (2009 est.) 60.25 years

Understanding the divergenceIn the late 1970s, the government of India eased restrictions on capacity expansionfor incumbent companies, removed price controls, reduced corporate taxes and promoted the

creation of small scale industries in large numbers. After independent India facing problemwith Sasmir economically because it costs more than benefit. The collapse of the Soviet

Union, which was India's major trading partner, and the Gulf War, which caused a spike inoil prices, resulted in a major balance-of-payments crisis for India, which found itself facing

the prospect of defaulting on its loans. In response, Prime Minister Narasimha Rao, along

with his finance minister Manmohan Singh, initiated the economic liberalisation of 1991.

While the credit rating of India was hit by its nuclear weapons tests in 1998, it has since beenraised to investment level in 2003.

Bangladesh has made significant strides in its economic sector performance since

independence in 1971. Although the economy has improved vastly in the 1990s after

democracy established, but Bangladesh still suffers in the area of foreign trade in South

Asian region. Despite major impediments to growth like the inefficiency ofstate-owned
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enterprises, a rapidly growing labor force that cannot be absorbed by agriculture, inadequate

power supplies Bangladesh is going ahead.

GeographyThe geography of India describes the physical features ofIndia, a country in South Asia. It

is the seventh-largest country in the world, with a total land area of 3,287,263 square

kilometers. Due to large size India can use their power over other countries in south-east.Bangladesh is a low-lying, riverine country located in South Asia with a largely marshy

jungle coastline of 710 km (441 mi) on the northern littoral of the Bay of Bengal. Natural

disasters, such as floods, tornadoes, and tidal bores affect the country yearly.

Gender EqualitySince Independence, the government of India has promulgated many laws to protect womens

rights. In general, however, application of many laws is weak particular in rural areas.

Bangladesh is a highly patriarchal (Men power over women) society and gender

discrimination is present at all community levels. Women are dependent on men throughout

their lives.

Variables Bangladesh India

Sex Ratio (m/f) 0.93 1.08

Life Expectancy Ratio (f/m) 1.032 1.047

Fertility Rate 2.6 2.62

Income Ratio (f/m) 0.51 0.32Literacy Ratio (f/m) 0.82 0.71

Women in Parliament (in %) 14.8 8.3

Military

Particulars India Bangladesh

Army personnel 980,000 101,000

Branches Army, Navy (includes naval

air arm), Air Force(Bharatiya Vayu Sena),Coast Guard

Bangladesh Army,

Bangladesh Navy,Bangladesh Air Force(Bangladesh Biman Bahini,BAF)

expenditure > % of GDP 2.9 % 1.1 %

Weapon holdings 10,538,000 547,000
http://en.wikipedia.org/wiki/State-owned_enterprisehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/List_of_countries_and_outlying_territories_by_total_areahttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/Riverinehttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/Littoralhttp://en.wikipedia.org/wiki/Bay_of_Bengalhttp://en.wikipedia.org/wiki/Tornadoeshttp://en.wikipedia.org/wiki/Tidal_borehttp://wikigender.org/index.php/wikigender.org:Variables_Sex_Ratiohttp://wikigender.org/index.php/wikigender.org:Variables_Life_Expectancy_Ratiohttp://wikigender.org/index.php/wikigender.org:Variables_Life_Expectancy_Ratiohttp://wikigender.org/index.php/wikigender.org:Variables_Fertility_Ratehttp://wikigender.org/index.php/wikigender.org:Variables_Fertility_Ratehttp://wikigender.org/index.php/wikigender.org:Variables_Income_Ratiohttp://wikigender.org/index.php/wikigender.org:Variables_Income_Ratiohttp://wikigender.org/index.php/wikigender.org:Variables_Literacy_Ratiohttp://wikigender.org/index.php/wikigender.org:Variables_Literacy_Ratiohttp://wikigender.org/index.php/wikigender.org:Variables_Women_in_Parliamenthttp://wikigender.org/index.php/wikigender.org:Variables_Women_in_Parliamenthttp://www.nationmaster.com/graph/mil_arm_per-military-army-personnelhttp://www.nationmaster.com/graph/mil_bra-military-brancheshttp://www.nationmaster.com/graph/mil_exp_of_gdp-military-expenditure-of-gdphttp://www.nationmaster.com/graph/mil_wea_hol-military-weapon-holdingshttp://www.nationmaster.com/graph/mil_wea_hol-military-weapon-holdingshttp://www.nationmaster.com/graph/mil_exp_of_gdp-military-expenditure-of-gdphttp://www.nationmaster.com/graph/mil_bra-military-brancheshttp://www.nationmaster.com/graph/mil_arm_per-military-army-personnelhttp://wikigender.org/index.php/wikigender.org:Variables_Women_in_Parliamenthttp://wikigender.org/index.php/wikigender.org:Variables_Literacy_Ratiohttp://wikigender.org/index.php/wikigender.org:Variables_Income_Ratiohttp://wikigender.org/index.php/wikigender.org:Variables_Fertility_Ratehttp://wikigender.org/index.php/wikigender.org:Variables_Life_Expectancy_Ratiohttp://wikigender.org/index.php/wikigender.org:Variables_Sex_Ratiohttp://en.wikipedia.org/wiki/Tidal_borehttp://en.wikipedia.org/wiki/Tornadoeshttp://en.wikipedia.org/wiki/Bay_of_Bengalhttp://en.wikipedia.org/wiki/Littoralhttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/Riverinehttp://en.wikipedia.org/wiki/Bangladeshhttp://en.wikipedia.org/wiki/List_of_countries_and_outlying_territories_by_total_areahttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/State-owned_enterprise


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