Learning from Bangladesh

Context: Lessons for India from the economic success of Bangladesh, even during the COVID-19 pandemic.

Economic success of Bangladesh

• High Gross Domestic Product (GDP): It was 8.4% in 2019 ( twice that of India); Maintained positive growth during the COVID-19 pandemic.
• Achieved GDP per capita of India’s level:  just under $2,000.
• On the road to become a developing country: By 2026, Bangladesh will drop its least developed country tag and move into the league of developing countries.

Lessons from Bangladesh’s successful development trajectory for India -

• Work for the women:
  • Increase women in the workforce: Bangladesh’s workforce in its textiles sector (accounts for 80% of Bangladesh’s exports) is almost all women (95%).
  • Government schemes targeting women: Bangladesh’s schemes like Pushti Apas (Nutrition Sisters) and community health clinics helped in improving development indices like infant mortality, sanitation, hunger and, gender equality.
• Liberalized trade: Bangladesh enjoys preferential trade treatments with the European Union, Canada, Australia, and Japan with negligible or zero tax.
  • With India, too, it has a zero-export duty on key products like readymade garments.
• Investor friendly: Its liberal Foreign Direct Investment (FDI) policy allows 100% equity in local companies and no limits on repatriation of profits in most sectors. 
• Make micro-lending accessible: Bangladesh has the world’s most successful and pioneering microfinance organizations like Grameen and BRAC have aided small businesses in the country and regionally.
• Aim to become a global hub for the sub-region: by building special economic zones which require infrastructure, connectivity and a welcoming environment for investors both domestic and foreign.

Conclusion: India shall collaborate with Bangladesh by integrating power systems, promoting free trade and liberalizing the visa regime for achieving the goal of South Asia’s development.