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Andy Mukherjee

The Next China? India Must First Beat Bangladesh

The country is missing its real comparative advantage by not emphasizing low-skilled labor exports.

India needs to get them into factories.

India needs to get them into factories.

Photographer: Prabhat Kumar Verma/Pacific Press/LightRocket/Getty

India’s Covid-19 economic gloom turned into despair this week, on news that its per capita gross domestic product may be lower for 2020 than in neighboring Bangladesh.

“Any emerging economy doing well is good news,” Kaushik Basu, a former World Bank chief economist, tweeted after the International Monetary Fund updated its World Economic Outlook. “But it's shocking that India, which had a lead of 25% five years ago, is now trailing.”