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IBCCI India-Bangladesh Chamber of Commerce & Industry Newsletter IBCCI India-Bangladesh Chamber of Commerce & Industry Volume: 45 / Issue: 45 / March 2020 www.ibcci.net From the President’s Desk Bilateral relations between Bangladesh and India are at all time high thanks to the strong political will and commitments of both the governments. According to a recent remark of the High Commissioner of India Smt. Riva Ganguly Das - “Both our two countries are passing through a Golden Era.” This has been possible due to dynamic leadership of both Prime Minister Sheikh Hasina and Narendra Modi in spite of occasional bureaucratic stasis. Rail, Waterways and air connectivity have improved a lot during the last decade or so. There has been remarkable progress in rail and waterways connectivity during the period. Although the balance of trade still remains negative for Bangladesh. Truly speaking, such imbalance will remain so for obvious reasons. If Bangladesh desires to narrow the gap, all out efforts need to be undertaken towards diversification of its export basket by finding new exportable products.. For this to happen Bangladeshi exporters must opt for aggressing marketing to promote their Abdul Matlub Ahmad products which their Indian counter parts are now practicing. Government also should do its bits in helping local exporters by way of offering incentives and organizing trade fairs in various regions of India as the government of India is doing. Volume of trade between the two improved significantly in recent times crossing US$ 10 billion mark in the last couple of years and Bangladesh’s exports to India have reached 1.7 billion dollar mark. This is remarkable. Board of Directors IBCCI has been advocating for more Indian investment in Bangladesh taking advantage of tax President benefits that the country gets for its exports to EU and Canada. Abdul Matlub Ahmad Adani Groups investment plans in Bangladesh to the tune of $ 350 million in association with Vice-Presidents Singapore based Wilmar for developing industrial parks and setting up manufacturing facilities. M. Shoeb Chowdhury Abhisek Das Such industrial expanse will help bring down trade imbalance between the two countries. Hony. Secretary General Arup Dasgupta ‘Bangladesh to have highest growth in Asia’ Hony. Jt. Secretary General Md. Abdul Wahed American business magazine Forbes has stated through an analysis that Bangladesh will gain Hony. Treasurer the highest economic growth in Asia during 2020. Dewan Sultan Ahmed According to Forbes, Bangladesh will have a GDP growth of 8% or above in 2020 by means Directors of foreign investments, low labor cost, readymade garments (RMG) and some other industries. Mohammad Ali Forbes said that Bangladesh has been able to attract a great deal of foreign investments for Venugopal N. C. Pillai its textile and RMG sectors as labor cost is cheap in the country. Al Haj Md. Bazlur Rahman Farkhunda Jabeen Khan Forbes has reported that India will have the Meherun Nessa Islam second highest growth in Asia during 2020 Ashish Goupal Brajesh Kumar which is 7.2%. According to Forbes, India Dr. Prakash Chand Saboo aims to produce and export a broad range Madhu P Singh of electronic goods this year. Al-Haj Mohammad Ali Motiar Rahman Tajikistan will also do well in economic Mohammad Ershad Hussain Rana terms in light of the analysis of Forbes with a GDP growth of 7%. Tajikistan acquired GDP Liakat Ali Bhuiyan growth of 7.1% and 7.3% in 2017 and 2018 respectively. Forbes has informed that Myanmar Ritesh Doshi Md. Moshiur Rahman is likely to have a GDP growth of 6.8% in 2020. Myanmar had been under military rule for a Robin Kumar Das long time. Siddhartha P Roy Anjesh Kumar Som The analysis of Forbes shows that some economic reforms in Myanmar are expediting its development. However, economists have remarked that political commitment and more Secretary & CEO Jahangir Bin Alam private investments are required for Bangladesh to reach the desired level of socio-economic advancement. (Courtesy: The Asian Age; Dated: 7th January, 2020) IBCCI Newsletter 1 IBCCI Bangladesh to outshine Malaysia, Singapore pore, HK by 2024 Bangladesh to emerge as 25th largest economy in in 2019. 2034: CEBR The annual rate of GDP growth is forecast to slow to Bangladesh’s economy will surpass that of Malaysia, an average of 7.3 percent between 2020 and 2025, Hong Kong and Singapore with its presence as the according to the report. 30th largest economy in the world by 2024, says a Over the subsequent nine years, Cebr forecasts that global report released by the Centre for Economics the economy will remain at this impressive rate, and Business Research (Cebr), reports UNB. which will see Bangladesh climb from 40th place in Bangladesh’s economy will further climb from the the World Economic League Table in 2020 to 25th 40th place in the World Economic League Table in place by 2034. 2020 to 26th and 25th position respectively by 2029 China is predicted to become the world’s largest and 2034, says the report - World Economic League economy in 2033, overtaking the US with growth Table 2020. boosted by technology. India, on the other hand, is The world economic league table with forecasts for predicted to overtake Germany to become the world’s 193 countries to 2034 was published recently. fourth largest economy in 2026 and overtake Japan With a PPP adjusted GDP per capita of $5,028 in to become the world’s third largest economy in 2034. 2019, Bangladesh is a lower middle-income country, China’s population is forecast to peak at 1,416.4 Cebr says. million in 2028 before falling to about 1 billion by Bangladesh’s economy performed well last year, 2100. recording a 7.8 per cent growth, according to the In addition, this demography means that the report. The country recorded 7.9 per cent growth in population is likely to age substantially as well. 2018. India’s population is expected to overtake China’s The population increased at a rate of 1.0 per cent in 2027, according to the UN. The report says they per year since 2014. This has meant that per capita expect the trend rate of growth for China to be 5.4 incomes have grown considerably in recent years. The per cent annually from 2019-24 and 5.2 per cent government debt as a share of GDP rose to 34.6 per annually from 2024-29 and 4.3 per cent annually cent last year. This is up from 34 percent in 2018. from 2029-34. Despite this increase, the public sector finances On India, they expect the trend rate of growth for remain in good shape. The relatively low debt India to be 5.5 percent annually from 2019-24 and burden has provided the government with the fiscal 6.1 percent annually from 2024-29 and 6.1 percent headroom to operate a budget deficit of 4.8 percent annually from 2029-34. (Courtesy: The Financial Express, 4th January 2020) India expects to finalize deals on 7 rivers in 2020 : Shringla Visiting Indian Foreign Secretary Harsh Vardhan of this particular stream could only be finalized on Shringla speaking at a seminar on “Bangladesh the basis of consensus of all the stakeholders, an and India : A promising Future” organized jointly by apparent reference to India’s West Bengal state. Bangladesh Institute of International and Strategic Prime Minister’s International Affairs Adviser Dr Studies (BIISS) and the High Commission of India in Dhaka on 2nd March, said “India expects to finalize proposed deals with Bangladesh on seven common rivers, excepting the Teesta, within 2020”. “NRC, CAA will have no impact on Bangladesh; Modi’s Dhaka visit would fully exemplify India’s strong sentiment of goodwill”, Mr. Shringla added. “We need to expedite harmonization of water flow data of seven rivers flowing through India and Bangladesh so that water sharing agreement can be finalized as early as possible... possibly within this year,” he further said It may be noted that in August last, Bangladesh and Indian agreed on preparing a framework on interim Indian Foreign Secretary Harsh Vardhan Shringla addresses a seminar on BangladeshIndia relations in water-sharing agreements on seven rivers — Manu, Dhaka on Monday, March 2 Muhuri, Khowai, Gumti, Dharla, Feni and Dudhkumar. Gawher Rizvi attended the program as the chief He, however, appeared to be uncertain about the deal guest. on Teesta River saying an agreement on water sharing Shringla said they are also working more closely IBCCI Newsletter 3 to simplify and expand trade as easier and simpler trading systems offer them scope to generate wealth and create jobs on both sides. He said there is enormous untapped potential for businesses to establish footholds in each other’s market. “And we, as governments, must make extra efforts facilitate our businesspersons and entrepreneurs doing business in each other’s country.” In a sideline of the event, President of India- Bangladesh Chamber of Commerce & Industry Abdul Matlub Ahmad had a short discussion with Shringla on the current state of bilateral relations between the two countries and presented a Chamber Crest to him. Abdul Matlub Ahmad, President IBCCI presenting Chamber Crest to Mr. Shringla (Courtesy: Dhaka Tribune; Dated: March 03, 2020) Shringla meets PM Hasina Visiting Indian Foreign Secretary Harsh Vardhan The press secretary said both sides also discussed Shringla paid a courtesy call on Prime Minister the coronavirus. Prime Minister Hasina said that Sheikh Hasina on Monday at her official residence Bangladesh already dedicated a hospital for Ganobhaban, reports UNB. coronavirus patients. Anyone found to be infected Briefing the media, PM’s Press Secretary Ihsanul Karim will be sent to that hospital. said the upcoming Bangladesh visit of Indian Prime Harsh Vardhan Shringla praised the economic Minister Narendra Modi, sub-regional connectivity development of Bangladesh and the readymade and various bilateral issues were discussed.
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