Newsletter IBCCI India-Bangladesh Chamber of Commerce & Industry

Volume: 37 / Issue: 37 / March 2018 www.ibcci.net

From the President’s Desk Past few months saw significant developments in Bangladesh’s growth trajectory coupled with international recognition to the end and World Bank’s recognition of the country’s graduation from LDC to the status of a developing one. A discerning annalists continue to usher kudos on Bangladesh for the significant developments made in several socio-economic indicators in the last few years. There have been some visible positive signals with regard to improvement Indo-Bangla bilateral economic cooperation. 66 percent growth in Bangladesh’s apparel exports to India, flagging off of second “Moitree Bus Service” between Tripura and Bangladesh, recent agreement between both the countries to set up a power plant by Bangladesh-India Friendship Power Company Limited in India, growing trends in power sector cooperation, possibility of importation of 250 mw low-cost power from India, both countries agreeing to set up more Border Haats are to name a few.

Abdul Matlub Ahmad In its part, IBCCI in recent months played its role as a catalyst for development of bilateral trade and investment through its participation in several business summits, conclaves etc. in India thereby facilitating B2B & B2G contacts. Furthermore, number of Indian business people visiting the Chamber with a view to understanding the prevailing business environment in the country and scope of business expansion.

Bangladesh attractive place for investment: Visiting former Indian President Pranab Mukherjee on Monday said Bangladesh is now an attractive place for investment. Inside Pranab Mukherjee said this when he met Prime Minister at her official residence WEF Development Index: Bangladesh ahead of most of its neighbours 3 Ganabhaban. Bangladesh Economy to stay strong 4 After the meeting, Prime Minister’s Press Secretary Ihsanul Karim briefed reporters. Bangladesh among top five LDC growth achievers: UNCTAD 5 Pranab Mukherjee said he had been involved in politics for a long time and worked as a member of the Indian Lokshobha in addition to holding a constitutional post. Bangladesh up in Economic Freedom Index-2018 6 He said now he is passing time reading books following his retirement from the presidency Apparel exports to India soar 66 percent 7 IDhaka, Delhi agree to set up more border haats 8 BIFPCL to set up power plant in India 9 Tripura launches second Maitri Bus service to Bangladesh 10 East India Trade Summit 2018, 11 and Delhi to sign MoU on medicinal plants: Shringla 12

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of India. to some extent due to the last year’s floods in Pranab Mukherjee recalled that his first foreign tour different parts of the country. as the President of India was Bangladesh in March The Prime Minister also pointed out the Rohingya 2013. issue and said over one million nationals On his arrival at Ganabhaban, Prime Minister Sheikh who fled to Bangladesh from Rakhaine State following Hasina received the former Indian President at its crackdown on them by government forces have been main entrance with bouquets. Pranab Mukjarjee’s given shelter in Cox’s Bazar on humanitarian ground. daughter Sharmista Mukherjee also accompanied Principal Secretary Nojibur Rahman and PMO Senior him. Secretary Suraiya Begum were present. Welcoming Pranab Mukjarjee, Sheikh Hasina Later, the Prime Minister also hosted a luncheon in elaborated overall economic scenario of Bangladesh honour of the former Indian President. and said the poverty level has been brought down to Pranab Mukherjee arrived in Dhaka on Sunday 22 per cent through various pragmatic steps of her afternoon on a four-day private visit to Bangladesh. government. –UNB (Courtesy: The Financial Express; Dated: January 16, Hasina, however, said the economy witnessed losses 2018)

WEF Development Index: Bangladesh ahead of most of its neighbours Bangladesh has been ranked 34th in the World This message is particularly relevant at a time when Economic Forum’s Inclusive Development Index’s global economic growth is returning to a more robust (IDI) list of emerging economies, ahead of South level and policymakers can do more to future proof Asian competitors India, Pakistan and but their economies and make them more equitable. behind Nepal. “Political and business leaders should not expect India is ranked 62nd, Pakistan 52nd, Sri Lanka is 40th, higher growth to be a panacea for the social the WEF says in the report published on Monday. frustrations, including those of younger generations Nepal is ranked 22nd. who have shaken the politics of many countries in recent years.” Norway remains the world’s most inclusive advanced economy, while Lithuania tops the list of emerging The report says decades of prioritising economic economies. growth over social equity has led to historically high levels of wealth and income inequality and caused On a scale of one to seven, governments to miss out on Bangladesh scored 3.98 in a virtuous circle in which the IDI, with one being the growth is strengthened by worst and seven the best. being shared more widely India scored 3.09, Pakistan and generated without 3.55, Sri Lanka 3.79 and unduly straining the Nepal 4.15. environment or burdening The IDI is an annual future generations. assessment of 103 countries’ Excessive reliance economic performance that by economists and measures how countries policymakers on gross perform on 11 dimensions domestic product as the of economic progress in primary matrix of national addition to the GDP. It has three pillars; growth and economic performance is part of the problem, since development; inclusion and; intergenerational equity GDP measures current production of goods and -- sustainable stewardship of natural and financial services rather than the extent to which it contributes resources. to broad socio-economic progress as manifested in The IDI data suggest that relatively strong GDP median household income, employment opportunity, growth cannot be relied upon by itself to generate economic security and quality of life, according to the inclusive socioeconomic progress and rising median report. living standards, says the report. The WEF urges the leaders to urgently move to a It says GDP growth is necessary but not sufficient new model of inclusive growth and development, condition for achievement of the broad-based saying reliance on GDP as a measure of economic progress in living standards by which most people achievement is fuelling short-termism and inequality. judge countries’ economic success. In a statement, Richard Samans, managing director

IBCCI Newsletter 3 and head of global agenda at the WEF, says economic generations,” he said. growth as measured by GDP is best understood as a The report says rich and poor countries alike are top-line measure of national economic performance. struggling to protect future generations. Broad, sustainable progress in living standards is the bottom-line result societies expect. The index’s Intergenerational Equity and Sustainability pillar, which takes into account public debt; carbon “Policymakers need a new dashboard focused more intensity of GDP; dependency ratio and adjusted net specifically on this purpose. It could help them to savings, actually deteriorated in upper-, middle- and pay greater attention to structural and institutional low-income economies since 2012 and improved aspects of economic policy that are important for only marginally in advanced economies. (Courtesy: The diffusing prosperity and opportunity and making Daily Star; Dated: 24th Jan, 18) sure these are preserved for younger and future

Bangladesh Economy to stay strong World Bank pins hopes on domestic demand, exports, improved infrastructure The World Bank has painted a brighter picture for The WB report said commodity importers across Bangladesh’s economy for the next two fiscal years, Asia continued to register solid growth, in line pinning hopes on strong domestic demand, exports, with potential rates, supported by robust domestic investment and remittance. demand and strengthening exports. According to the The Global Economic Prospects, a flagship report of report, the growth remained strong in Bangladesh the World Bank Group, said activity in Bangladesh despite disruptions related to floods. would grow at an average of 6.7 percent a year over Main downside risks to the outlook for Bangladesh fiscals 2018-2020, benefiting from strong domestic include fiscal slippages and a setback in demand and strengthening implementation of reforms to exports. improve corporate and financial “Low interest rates and sector balance sheets. improved infrastructure are In South Asia, growth slowed expected to lift investment,” to an estimated 6.5 percent said the report, which was in 2017, marginally below the unveiled globally on Tuesday. June 2017 forecast owing to Remittances are expected to temporary disruptions from rebound as growth firms up adverse weather conditions in Gulf Cooperation Council across the region. countries, the report said. Elevated credit growth Bangladesh is among the top continued to support investment 17 out of 134 countries in the in some countries, including list of GEP forecasts that are Bangladesh and Pakistan. projected to have a growth rate About the risk confronting the of 6.4 percent or more in 2017- countries, the report said the 18, said Zahid Hussain, lead economist of the World main risks to the outlook are domestic. Current Bank’s Dhaka office. account deficits gradually widened across the region, The government has set a target of 7.4 percent GDP including in countries such as India, Bangladesh and growth for the current fiscal year. Pakistan. Recently, Finance Minister AMA Muhith said the Balance sheet weakness for corporate—for example gross domestic product may grow by 7.5 percent. in India—and financial sectors—for example in Bangladesh and India—continued to weigh on But Hussain said, “Achieving the government private investment, the report said. target of 7.4 percent growth this fiscal year will be challenged by banking sector vulnerabilities, Corporate debt overhangs and high levels of non- infrastructure deficiencies, uncertainties in the run up performing loans have been long-standing concerns to elections, and the slow pace of structural reforms.” in some countries, including Bangladesh and India. The Bangladesh economy is projected to grow 6.4 “Setbacks in efforts to resolve these domestic percent in 2017-18. The government’s Seventh Five- bottlenecks would continue to weigh on investment, Year Plan aims to achieve 7.4 percent GDP growth and more broadly on medium-term growth prospects annually for 2015-16 and 2019-20. in the region.”

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Slippages relating to upcoming elections and weak illegal channels. tax revenues (e.g., Bangladesh, Nepal and Pakistan) The WB said the global economy is experiencing a could derail fiscal consolidation efforts, said the WB. broad-based cyclical upturn, which is expected to Remittance inflows have been subdued recently due be sustained over the next couple of years, although to fiscal consolidation and growth slowdowns in with downside risks. the Middle East, which constitutes roughly half of In contrast, growth in potential output (full- remittances to South Asia. A protracted slowdown employment output) is flagging, languishing below its in remittance inflows would weigh on domestic longer-term and pre-crisis average both globally and consumption in countries such as Bangladesh and Sri among emerging market and developing economies. Lanka. “The forces depressing potential output growth will Bangladesh’s remittance earnings dropped to a continue unless countered by structural policies,” the six-year low to $13.53 billion in 2017 as many World Bank said. (Courtesy: The Daily Star; Dated: January expatriate Bangladeshis sent money home through 11, 2018)

Bangladesh among top five LDC growth achievers: UNCTAD Calls for restructuring economies Conference on Trade and “The international community should strengthen its Development (UNCTAD) has said that of 45 poorer support to LDCs in line with the commitment to leave countries, only five countries including Bangladesh no one behind,” Paul Akiwumi, Director of UNCTAD’s achieved economic growth at 7.0 per cent or higher Division for Africa, Least Developed Countries and in 2017. Special Programmes, said. The four other countries are Djibouti (+7pc), Ethiopia “With the global economic recovery remaining tepid, (+8.5pc), Myanmar (+7.2pc), and Nepal (+7.5pc) development partners face constraints in extending while Bangladesh achieved 7.1pc-plus growth in support to LDCs to help them meet the Sustainable 2017. Development Goals.” The analysis of the United Nations Conference on GDP growth rates will likely continue to fall short not Trade and Development (UNCTAD) contends that only of their 2002-2008 average, but also of their too many Least Developed Countries (LDCs) remain 2010-2014 levels, Akiwumi said. dependent on primary commodity exports. The analysis highlights that LDC growth averaged All other LDCs recorded the current account deficits of just 5.0 per cent in 2017 and will reach 5.4 per cent varying sizes, ranging from less than one percentage in 2018 - below the target of 7.0 per cent growth point of GDP-Bangladesh and Nepal-to more than envisaged by target 1 of Sustainable Development 25 per cent in the cases of Bhutan, Guinea, Liberia, Goal 8 on promoting sustained, inclusive and Mozambique, and Tuvalu. sustainable economic growth. Resources sent by individuals to LDCs as a group While international prices for most primary commodity (remittances) totalled $36.9 billion in 2017, down by categories have trended upwards since late 2016, this 2.6 per cent compared to the peak of $37.9 billion modest recovery barely made a dent to the significant in 2016. In absolute terms, the largest recipients drop experienced since 2011, particularly in the cases of remittances among LDCs included Bangladesh of crude petroleum and minerals, ores and metals. ($13.6 billion in 2016), Nepal ($6.6 billion), Yemen In 2017, the LDCs as a group were projected to ($3.4 billion), Haiti ($2.4 billion), Senegal ($2 billion) register a current account deficit of $50 billion, and Uganda ($1 billion), according to the UNCTAD. the second-highest deficit posted so far, at least in Economic development in the world’s most- nominal terms. disadvantaged countries, mostly in sub-Saharan This stands in contrast to figures for other developing Africa, is stalling against the background of a countries (not LDCs), all developing countries taken lukewarm global recovery, risking widening inequality, together and developed countries, all of which, as new analysis from UNCTAD has revealed. groups, registered current account surpluses. Data suggests that the 47 LDCs, a long-established The LDCs will not achieve the Sustainable category of nations requiring special attention Development Goals unless they speed up wholesale from the international community, will fall short of restructuring of their economies, said the UNCTAD. goals set out in the 2030 Agenda for Sustainable (Courtesy: The Financial Express; Dated: 07th Feb, 18) Development unless urgent action is taken.

IBCCI Newsletter 5 ADB hopes over 7 percent GDP growth for Bangladesh in 2018 Bangladesh will be able to maintain over 7 percent Bangladesh’s economy would continue to post over GDP growth for the third straight year in fiscal 2017- 7 percent growth in the current fiscal year. According 18, Asian Development Bank Vice-President Wencai to the Bangladesh Bureau of Statistics, the country achieved 7.11 percent GDP growth in 2015-16 and 7.28 percent in 2016-17. The government has targeted 7.4 percent GDP growth this fiscal. Zhang also reaffirmed ADB’s commitment to support Bangladesh on implementing SDGs. He noted that the Manila-based donor will expand lending to $8 billion to Bangladesh during 2016- 2020 from $5 billion in 2011-2015. He pointed out unemployment as the biggest challenge for Bangladesh’s economy and advised emphasizing small and medium enterprises or SMEs to tackle it. ADB Vice-President Wencai Zhang briefing the media at Bank’s Dhaka office In his remarks at the opening session of the Zhang thinks. He expressed his thought at a media Bangladesh Development Forum on 16th January he briefing at his agency’s office Dhaka’s Sher-e-Bangla said it was necessary for the country to further boost Nagar on 18th January. investment from both public and private sectors to Citing the achievements in GDP growth in past two fulfill the country’s growth aspirations and move the fiscal years, Zhang said the ADB forecast was that economy to a higher growth trajectory. (Courtesy: The Asian Age; Dated: 21st January, 2018) Bangladesh up in Economic Freedom Index-2018 Bangladesh’s economic freedom score is 55.1, measurement: rule of law, government size, making its economy the 128th freest in the Economic regulatory efficiency and open markets. Despite the Freedom Index-2018 released by the Heritage violence in 2015, GDP growth has been robust. Foundation. Bangladesh is ranked 29th among 43 Garment exports, the backbone of Bangladesh’s countries in the Asia-Pacific region, and its rank is industrial sector, accounted for more than 80 percent ahead of India (30th), Pakistan (31st), Nepal (32nd) of total exports and surpassed $25 billion in 2016. and Vietnam (35th). Emigrant remittances account for as much as eight Its overall score has increased by 0.1 point, with percent of GDP. improvements in the scores for judicial effectiveness It said property laws are antiquated, record-keeping and government integrity outpacing declines in systems are poor, and property rights are enforced property rights, trade freedom, and labor freedom, unevenly. Contract enforcement and dispute said the US-based conservative Heritage Foundation. settlement are inefficient, the release said, adding that The report said Bangladesh’s economy has grown corruption and criminality, weak rule of law, limited by approximately six percent annually for two bureaucratic transparency, and political polarization decades despite prolonged political instability, poor have undermined government accountability. infrastructure, endemic corruption, insufficient power Trade is moderately important to Bangladesh’s supplies, and slow implementation of economic economy; the combined value of exports and imports reforms. equals 38 percent of GDP. The average applied tariff The fragile rule of law continues to undermine rate is 11.9 percent. Nontariff barriers impede trade. economic development, it said. Corruption and The government openness to foreign investment is marginal enforcement of property rights force workers less than average. and small businesses into the informal economy, Amendments to the Bank Companies Act, intended it said, adding that despite some streamlining of to strengthen the central bank’s independence business regulations, entrepreneurial activity is also and reduce special treatment of the state-owned hampered by an uncertain regulatory environment commercial banks, have been implemented. and the absence of effective institutional support for Hong Kong, Singapore, New Zealand, Switzerland, private-sector development. Australia, Ireland, Estonia, the UK, Canada and the The index uses four broad categories for UAE are among the top ranking countries. (Courtesy: The Asian Age; Dated: February 06, 2018)

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Apparel exports to India soar 66 percent Garment exports to India soared 66.41 percent in retailers have started sourcing apparel items from the first six months of the fiscal year on the back Bangladesh in big volumes, he said. of demand from Western brands operating in the “We are expecting that our exports to India will cross neighbouring country and closure of some small- and the $1 billion mark in June this year. And we have medium-scale factories. been struggling to reach this mark for many years Between July and December last year, garment now,” Ahmad added. shipments to the neighbouring country fetched Apart from Western retailers, some Indian retail $111.33 million, according to data from the Export giants have also been sourcing garment items in big Promotion Bureau. volumes from Bangladesh, said “India is becoming a major Siddiqur Rahman, president market for us,” said Mohammad of the Bangladesh Garment Hasan, executive director of Manufacturers and Exporters Babylon Group, a leading Association. garment exporter. “India, China and Japan are The reason for the spike, he our next big markets in Asian says, is that global retail giants region,” he added. like H&M and Walmart have Although the majority of started sourcing apparel items Bangladeshi goods enjoy from Bangladesh for Indian duty-free benefit in the Indian consumers. market, garment exports to The shuttering of a horde of India did not raise much over small and medium factories all over India for their the last few years due to the imposition of 12.5 failure to maintain strict compliance requirements and percent countervailing duty on items from Bangladesh. pay higher wages over the last two years also played a Bangladeshi garment exporters also face provincial part in the surge in shipments from Bangladesh. taxes and non-tariff barriers in India, which has an Abdul Matlub Ahmad, president of India-Bangladesh apparel market worth nearly $40 billion. Chamber of Commerce and Industry, echoed the same. However, garment exports to India have been showing “Our exports to India will grow further in the near signs of pickup from last year. future as local exporters are enjoying different trade Overall, exports to India increased 5.99 percent year- benefits to the neighbouring country.” on-year to $361.91 million in the July-December The cost of importing garment items to India from period. (Courtesy: The Daily Star; Dated: 18th Jan, 2018) other countries is very high, due to which the Western Bangladesh third fastest in vegetable growth acceleration Bangladesh now grows 16.04 million (160.42 lakh) tonnes of vegetables annually in the country, according to sources at the agriculture ministry, reports UNB. During the ongoing three-day National Vegetable Fair that began on January 14 at the Krishibid Institute Bangladesh (KIB), ministry officials said, country’s weather and soil conditions are favourable for growing vegetables round the year. Over 16.2 million farmers cultivate 156 types of vegetables across the country. Terming the production growth in vegetables as a ‘silent revolution’, they added that Bangladesh also exports vegetables to over 50 countries across the Vegetables of different varieties displayed at the National Vegetables Fair at the Krishibid Institute, Dhaka globe, fetching Tk. 7.0 billion (700 crore) annually. Agriculturists said that the spike in vegetable Statistics show that vegetables’ production has production is also empowering people to become increased five-fold since Bangladesh’s independence self-sufficient, reducing unemployment in the process. in 1971. Additional deputy director (fruits and flowers) at the Currently Bangladesh ranks third among the countries ministry’s horticulture wing, Mahbuba Moonmoon which posted highest growths in vegetable production told UNB that the latest innovations and leading in recent years. cultivation methods are exhibited at the fair, which

IBCCI Newsletter 7 includes producing in drums, net house, use of are hilly varieties. hormones, latest pesticides, etc. This year, 56 institutes are taking part in the fair. Relevant information is also being provided at the Exhibited vegetables include carrots, turnip, potatoes, fair’s agriculture information service stall. sesame, cucumber, tomatoes, and pumpkin, among A total of 104 types of vegetables are being exhibited others. (Courtesy: The Financial Express, dated 16th January in 82 stalls and four pavilions, among which 60 types 2018)

Dhaka, Delhi agree to set up more border haats Bangladesh and India have agreed in principle to The Bangladesh delegation thanked the Indian side set up more border haats (markets) along common for the recognition of certificates of 21 food items by points in the future considering local demand. the Bangladesh Standards and Testing Institution. It The agreement was reached at a two-day also requested India to recognise six remaining items. Bangladesh-India commerce secretary-level meeting The Bangladesh commerce secretary requested his ending on Thursday at the Ministry of Commerce in Indian counterpart to withdraw the anti-dumping Bangladesh Secretariat. duty imposed by India on jute goods and hydrogen Commerce Secretary Shubashish Bose led a peroxide. 16-member Bangladesh delegation while his Indian Besides, a request was also made to India for counterpart Rita Teaotia led one of the neighbouring extending cooperation to enhance the capacity of country. The last such meeting was held in Bangladesh regarding anti-dumping duty. on November 15-16 in 2016. On the other hand, India requested Bangladesh to The meeting expressed satisfaction over operations provide duty facilities for exporting Indian sugar to of the four existing border haats. A decision was Bangladesh. taken to expedite the procedure of setting up six As India is the second largest trade partner of more border haats within the next six months, said a Bangladesh, the volume of bilateral trade rose to ministry press release. $6.8 billion last fiscal year (FY17). It said India proposed Bangladesh form a Two-way trade is still in favour of India as Bangladesh “Comprehensive Economic Partnership” considering imported goods worth $6.13 billion last fiscal against the existing situation and friendly bilateral relations. the export of goods worth $672.4 million. Both sides agreed to gradually ensure infrastructural Although India has provided duty-free and quota- development and necessary facilities of land customs free access to some 25 Bangladeshi products, the ports along common borders while ensuring speedy trade deficit is yet to be reduced due to various offloading of goods from those ports. impediments, including insufficient infrastructure and Besides, on request, the Bangladesh delegation various non-tariff barriers. informed that a proposal for allowing more exportable items from India through Bangladesh’s land customs ports was under scrutiny. To minimise this trade gap and barriers as well as further promoting a business-friendly environment, Bangladesh urged India to allow using its airports bilateral meetings often take place at different tiers, for exporting goods to third countries while both of which the commerce secretary-level one plays countries decided to form a CEOG Forum to create a an important role. (Courtesy: The Daily Star; Dated: 11th business-friendly environment. February, 18)

India looks to supply LPG to its NE states via Bangladesh Indian Oil Corp Ltd is planning to adopt a new way of before further exporting to bordering Indian states supplying cooking gas to the its northeastern states like Tripura, Assam and Meghalaya. by first exporting it to Bangladesh in a move that This will do away with the need for transporting will drastically cut the refiner’s freight cost and help LPG that India imports in the eastern coast through in integrating the energy markets in the two Asian a long-winding route covering the states of Bihar nations, chairman Sanjiv Singh said, according to a and Assam along what is referred to as the “chicken report by www.livemint.com. neck” to states further in the East. The idea is to ship liquefied petroleum gas (LPG) “We are in advanced stages of talks with some of the either from Paradip port in Odisha or from the Bangladesh companies for LPG export to Bangladesh Haldia port in West Bengal to the Chittagong port for re-export to North East of India. This should in Bangladesh from where it could be moved by road

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happen soon,” said Singh. It is expected to improve petroleum products. LPG supply in northeast and boost the Bangladesh A plan for setting up a large LPG import terminal economy. in partnership with local companies, allowing large “The efficiency gain will be huge. It is a win-win vessels to arrive in the Chittagong port, is also on the for everyone,” said Singh, adding that Chittagong drawing board. has LPG import terminals, from where, Tripura is India is currently investing heavily in energy not far. The NDA government is on a drive to boost infrastructure to develop its long neglected eastern consumption of the clean cooking fuel, which will part. Long-distance gas pipelines as well as city gas improve women’s health by replacing other polluting distribution network are part of this. fuels and reduce kerosene consumption. The drive has seen LPG imports and consumption go up sharply. Bangladesh will be an ideal partner for expanding this network to the northeast region. India’s ONGC India has been pursuing closer ties in the energy Tripura Power Co. (OTPC) is already exporting power sector with Bangladesh helping the markets to from Tripura to Bangladesh. “I think there is a lot of integrate. synergy that is possible (between the two nations), Indian Oil Corp is also exploring long term deals with said Singh. (Courtesy: The Fiancial Express dated 2nd January Bangladesh companies for supplying LPG and other 2018) BIFPCL to set up power plant in India Dhaka and New Delhi have agreed to set up a was unwilling to invest in the power transmission line power plant in India by Bangladesh-India Friendship and other facilities on its side after giving consent to Power Company Limited in its second venture after India’s proposal in August 2013. the controversial Rampal 1,320MW coal-fired plant India brought the power corridor issue back on the being constructed 14 kilometres off the Sunderbans. table after it proposed to lend $400 million under The decision was taken at a joint steering committee its third Line of Credit with Bangladesh to build a meeting led by the two power division secretaries, 200-kilometre power transmission line and other Ahmad Kaikaus from Bangladesh and Ajay Kumar infrastructures on Bangladesh side, the officials Bhalla from India, held in New Delhi on January 31, confirmed. officials said. State-run Power Grid Company of Bangladesh Both the sides were agreed to install either a coal- would build and operate the high-voltage power fired power plant — one like Rampal plant — or transmission infrastructures on Bangladesh side, they a solar power plant in India, Bangladesh Power said. Development Board chairman Khaled Mahmud told When asked about the power to be transmitted New Age on Saturday. through Bangladesh, the power board chairman said Solar electricity became cheaper in India, which that the transmission infrastructures would facilitate prompted both the parties to go for a large-scale solar transmission of approximately 4,000MW of power of power project, he said, adding that the power plant which Bangladesh would be allowed to buy up to would be installed with the similar modalities under 1,000MW. which the power project was being implemented in He, however, said that the issue of power Bangladesh. transmission through Bangladesh was related to The BIFPCL, a 50-50 joint venture of the power board building hydropower facilities in India’s north-eastern and India’s National Thermal Power Corporation, provinces, which would not be mature before 2021 would now be asked to take an initiative in this or 2022. regard, Khaled said. Initially, India plans to transmit the power from Both the governments have drawn severe Assam’s Barnagar to Bihar’s Katihar via Bangladesh, criticism from green activists for carrying out the said power grid company officials, adding that the implementation of Rampal power project as, they say, power transmission line would enter into Bangladesh the plant’s emission as well as coal transportation at Parbatipur in Dinajpur while the departure point through River Passure will destroy biodiversity of the was yet to be finalised. Sunderbans. India’s north-eastern region, including Sikkim, has At the meeting, the Indian side also revived the issue a total of 33,100MW hydropower potentials which of electricity transmission from eastern part to the has remained almost untapped as the region has not western part through Bangladesh using a 765 kV much demand for electricity while transmission of transmission line, the officials said. the electricity to its western part requires a corridor India put the matter into hibernation as Bangladesh through Bangladesh due to geo-political boundaries. (Courtesy: New Age dated 4th February 2018)

IBCCI Newsletter 9 Electricity trade win-win for India, Bangladesh: report Electricity import from India is an economic option for The report was published at a workshop organised Bangladesh as it is cheaper than all other options for by the Bangladesh Enterprise Institute at Lakeshore the country confronting limited choices, according to Hotel in Dhaka yesterday. a new report. The report was prepared by Delhi-based research think-tank the Integrated Research and Action for Development (IRADe) under the South Asia Regional Initiative for Energy Integration (SARI/EI) project supported by the USAID. The study used three scenarios to quantify the power trade potential and macroeconomic benefits for both countries. They can also invest in savings certificates and other government securities worth Tk 5 lakh. The banks can disburse Tk 2 lakh in SME loans to an e-KYC account holder. The report titled -- Economic Benefits from The e-KYC will eventually eliminate the need for hard Bangladesh-India Electricity Trade -- said India and copy document management, said the BB official. Bangladesh have identified infrastructure involving “It will reduce the risk of identity fraud,” he said. power and transport as potential areas to improve economic cooperation, leading to better political The service will completely be automated and the relations. e-KYC data will be furnished in real-time, without any manual intervention. Digitally signed e-KYC “This study substantiates the fact that electricity data will be machine readable, meaning the service trade is a win-win option for both countries,” said provider can directly store it as customer record in the report. their database for purpose of service and audit etc. (Courtesy: The Daily Star dated February 27, 2018)

Tripura launches second Maitri Bus service to Bangladesh Indian state of Tripura put on was committed to providing the road a second passenger quality service and wished bus to Bangladesh on 12th the passengers a happy January to boost trans- journey. border relationship, reports MLA Ratan das, who telegraphindia.com. attended the inaugural The state already operates ceremony, said Tripura a bus to Calcutta via Dhaka shares a fabulous history under its Maitri (friendship) with Bangladesh and project. This is the second Bengal is a “close relative” bus under the service. of Tripura. He stressed on Flagging of the second increasing communication Maitri bus, Tripura Road with both the Bengali- Transport Corporation populated destinations. (TRTC) chairman Rajendra (Courtesy: The Financial Express; Reang said the corporation Dated: 14th January, 2018)

Bangladesh is likely to import 250 mw low-cost power from India Bangladesh is hopeful to import low cost electricity India (PTC), has agreed to supply the power in next from Indian open market as a leading power provider six months,” said Power Division Secretary Dr Ahmad has agree to supply the power at reduced price, said Kaikaus after negotiation with PTC. sources in power division. He expected that the government will able to reduce “We are expected to import about 250MW of the tariff rate further after evaluation of bidding for electricity from India at reduced tariff as the leading long term import of power from Indian open market. Indian power provider, Power Trading Corporation of According to officials, the new power import rate is set

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US$0.0749 which currently stands at $0.0759. unit tariff at US$0.0749. BPDB is now evaluating the tender for import the The power division earlier invited a tender on January electricity under long term period. 15, 2015 to import 250MW of electricity for long term To avail the opportunity of importing electricity basis from interested Indian power traders under open from Indian open market, the government will have market trading. The Bangladesh Power Development to extend the power purchase agreement (PPA) for Board (BPDB) has already short-listed Indian firms another six months as the agreement expires this for import of electricity for 15 years period as per month. the memorandum of understanding (MoU) on power sector cooperation between Bangladesh and India. The A special committee led by power secretary Dr Ahmad government has also planned to import an additional Kaikaus on Thursday took the decision to import 400MW of electricity from a coal-fired thermal power 250MW power from Indian open Market for another plant at Haldia in West Bengal. Indian power trader six months. The power division will present the tariff PTC India Ltd has expressed its interest to supply the before the cabinet committee on public purchase for electricity from the Haldia plant last April. approval immediately, said officials concerned. Besides, Dhaka has also agreed to import another The government presently imports a total of 640MW 60MW of electricity from Indian Tripura state during of electricity from India since October 5, 2013 through the premier’s recent visit to India. Bangladesh and Bharamara grid line. Of the volume, 250MW of power India have already agreed to trade 500MW additional comes from Indian state-owned NVVN’s unallocated power through the second gridline to be commenced quota at an average market tariff of Tk 2.78 per in the middle of 2018. (Courtesy: Daily Sun dated 19th kilowatt (per unit). Besides, another 250MW comes January 2018) through Indian open market through PTC with per

East India Trade Summit 2018, Kolkata The East India Trade Summit 2018 organised by Secretary & CEO Jahangir Bin Alam, Chairman of Confederation of West Bengal Trade Association IBCCI member company Rose Agro (Pvt.) Ltd. Md. (CWBTA) was held at Biswa Bangla Convention Abdul Aziz, Managing Director of M/S. Khairul Rice Centre, New Town, Rajarhat, Kolkata from January 27 Agency, Proprietor of M/S. Shafique Traders Md. – 29 with Bangladesh was the partner country. Shafiquel Islam Khan, Managing Director of 5F An eight member IBCCI delegation led by the Limited Engr. Arun Kumar SarkerManaging Director of President of the Chamber, Abdul Matlub Ahmad. GSM International and Partner of NAZABI Akhter U. Other members of the delegation were – Chamber Zaman.

IBCCI President Abdul Matlub Ahmad addressing the inaugural session of IBCCI delegation members with Immediate Past President of CWBTA Radha the summit Kishan Rathi (3rd from left)

Dhaka and Delhi power cooperation growing Bangladesh High Commissioner to India Syed Action for Development (IRADe) aimed at promoting Muazzem Ali on 11th January said Bangladesh South Asian electricity trade. is relying on bilateral, sub-regional and regional Muazzem Ali said Bangladesh is on track to achieve cooperation in boosting its energy security besides its Prime Minister Sheikh Hasina’s vision of ensuring own national efforts. ‘energy for all’ by reaching the target of generating He said Bangladesh’s engagement with India in the 24,000 MW power by 2021. “It is a matter of power sector has expanded since 2009 thanks to great pleasure that Prime Minister Sheikh Hasina Prime Minister Sheikh Hasina’s bold initiatives. The and Prime Minister have taken the envoy was speaking at a workshop on the economic partnership between the two countries far beyond benefits of Bangladesh-India power trade at a New strategic partnership touching upon virtually all areas Delhi hotel organized by Integrated Research and of human endeavor,” he said. On energy cooperation,

IBCCI Newsletter 11 the envoy referred to the substantive cooperation Muazzem Ali said Bangladesh is building 2400 MW between Bangladesh and India in energy sector, Rooppur Nuclear Power Plant in Pabna with Russian according to Bangladesh High Commission in New and Indian collaboration. The two neighbors are Delhi. also jointly building a coal-based power plant at The High Commissioner highlighted a few areas of Rampal, Bangladesh to produce 1320 MW of power. the engagement - Bangladesh currently importing The envoy said India’s leading private companies, 660 MW of electricity from India; discussion on Reliance Power and Adani Power, have signed importing an additional 500 MW is under progress. agreements with Bangladesh. (Courtesy: The Asian Age The two countries, he said, have started cooperation dated January 12, 2018) on renewable energy and nuclear power.

CII Partnership Summit 2018 in Visakhapatnam The Partnership Summit 2018 of Confederation of A 4-member Chamber delegation led by the IBCCI Indian Industry (CII) was held at Visakhapatnan, President, Abdul Matlub Ahmad participated in the Andhra Pradesh from February 24 – 26. Theme of the Summit. Other members of the delegation were – summit was “Charting New India’s Global Integration Chairman of Safesea Bangladesh Ltd. Md. Aminur Strategy. Rahman, Managing Director of Safesea Ltd. A. T. M. Vice-President of India M. Venkaiah Naidu along the Altaf Hossain and Proprietor of NAZABI Nasima Jahan Chief Minister of Andhra Pradesh, Chandra Babu Bijly. Naidu inaugurated the Summit .

IBCCI President Abdul Matlub Ahmad exchanging pleasantries with Andhra One of the panellists in a session on “Spreading Manufacturing of Next Pradesh Chief Minister Chandra Babu Naidu at the Summit Generation Automobiles for the Global Market” IBCCI President Abdul Matlub Ahmad (3rd fm left) is seen in the picture Tata launches Tiago AMT in Bangladesh markets Tata Motors announced the commercial launch of for smooth and regular acceleration to offer for a its new TIAGO Automatik with cutting edge design, comfortable and stress-free driving experience. In technology, driving dynamics and a pleasurable driving addition, it boasts of two drive modes sports and city, for a peppy driving experience and city cruising. For ease of manoeuvre ability in heavy traffic conditions and during parking, TIAGO Automatik comes with an in-built ‘creep’ feature, which enables the car to crawl as soon as the pressure is eased off the brake pedal, without pressing the accelerator. Chairman of Nitol-Niloy Group Abdul Matlub Ahmad said, “The TIAGO reflects our passion and commitment to bring exciting, technology driven latest cars into the Bangladesh market. Class leading features, advanced Tata Motors announced the commercial launch of its new TIAGO Automatik in Dhaka on 13th January. driving dynamics, outstanding fuel efficiency, offers a experience to create new segment benchmarks in the great value for a contemporary, young car, extremely industry with a starting price of Tk 14.95 lakh. The suitable for Dhaka streets. TIAGO will be available for sale from Saturday across President of Passenger Vehicles Business Unit of Tata the country in over 11 Tata Motors sales outlets. Motors Mayank Pareek said, “The TIAGO is the first The TIAGO Automatik comes equipped with four gear car to embody our new impact design language. This positions automatic, neutral, reverse and manual globally benchmarked car represents the next big leap in our transformation journey. It is the most awarded

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car of the year. With inputs from the Pune, UK and Italy design The TIAGO has been instrumental in the growth of studios, the TIAGO’s appealing exterior design has a Tata Motors’ brand across the PV market. In line with dynamic silhouette to emphasize the compact look our commitment of launching products that cater to and sharp design. The stylish design is complemented the need of the ever-evolving customer, we are happy by enhanced performance and driving dynamics. The to launch the TIAGO Automatik yesterday. We are TIAGO will be available in all new petrol engines - confident that it will further expand the market for Revotron 1.2L (Courtesy: The Asian Age dated January 14, us.” 2018).

7th Global Economic Summit of WTC & AIAI, The 7th Global Economic Summit 2018 organised by World Trade Centre, Mumbai and All India Association of Industries (AIAI) was held in Mumbai from February 22 – 24 at the WTC Mumbai. Mr. Suresh Prabhu, Minister of Commerce & Industry, Govt. of India inaugurated the summit. Delegates and Speakers from across 33 Countries including Bangladesh, USA, UK, Italy, France, Switzerland, Chile, Argentina and Algeria to name a few and participation of over 500 delegates with 65 exhibitors showcasing products and services across sectors of agriculture and manufacturing participated in the summit. Jahangir Bin Alam, Secretary & CEO, India-Bangladesh Chamber of Commerce and Industry speaking on IBCCI Secretary & CEO Jahangir Bin Alam represented “Global Value Chain” at Global Economic Summit 2018 of World Trade Centre, Mumbai on February 23 the Chamber at the Summit and was one of the speakers in a panel discussion on “Global Value Chain” and spoke on Success of Value Chains – Learing from ASEAN

Dhaka and Delhi to sign MoU on medicinal plants: Shringla Indian High Commissioner in Dhaka Harsh Vardhan Chairman of India Bangladesh Friendship Society Dr Shringla yesterday said Bangladesh and India are AK Azad Chowdhury and Organising Secretary ISE- now in negotiations to sign a memorandum of SFEC 2018 Prof Dr Sitesh Bachar also spoke on the understanding (MoU) soon for cooperation in the field occasion. of medicinal plants. “Once signed, this MoU could open up new vistas for joint collaboration, including transfer of technology in medicinal plant cultivation, exchange of monographs on medicinal plants and the development of digital databases on medicinal plants,” he said. The High Commissioner was addressing the inaugural session of the 18th International Congress of International Society for Ethnopharmacology and 5th International Congress of Society for

Ethnopharmacology, India (ISE-SFE 2018) with the Indian High Commissioner in Dhaka Harsh Vardhan Shringla receiving crest at the International theme ‘Ethnopharmacology & Drug Development: Congress of International Society for Ethnopharmacology at Dhaka University yesterday. -AA Innovation meets Tradition’. Science and Technology Architect Minister Yeafesh Osman addressed the The High Commissioner said India and Bangladesh are program as the chief guest. traditional repositories of ancient systems of healing, Vice Chancellor of Dhaka University Prof Dr Md including Ayurveda, Unani and other such systems Akhtaruzaman, former Governor of Government of which have been widely practiced by our people since Chhattisgarh, Shekhar Dutt, President of International times immemorial. sHe said the signing of the MoU Society of Ethnopharmacology Prof Guillermo on cooperation in traditional system of medicine and Schemeda Hirschman, Secretary of Society for homeopathy between India and Bangladesh in 2014 Ethnopharmacology India Prof Pulok K Mukherjee, has provided an impetus for joint collaboration in several aspects of traditional medicines. The areas are

IBCCI Newsletter 13 joint research, mutual recognition of pharmacopeias which could be used for the betterment of the people and formularies, exchange of experts and mutual of the two countries. “Globalising accumulated recognition of traditional preparations, he said. local knowledge in the field of traditional medicines High Commissioner Shringla said the sharing of and the promotion of scientific studies on naturally knowledge and experience between the participants derived products would go a long way in establishing will enrich our cumulative knowledge in this field the future of ancient systems of medicine,” he said. (Courtesy: The Asian Age; Dated: January 14, 2018) Pran starts toiletries export to India Pran-RFL Group has started exporting its toiletries to “We started our journey in India in August last year India. through exporting Swift, Glitter and Ray branded Swift Toilet Cleaner, Glitter Dish Wash, Glass Cleaner toiletries products to Tripura, Assam and Meghalaya. and Ray Detergent Powder are now also available Our target is to spread toiletries products across India in Bhutan and Nepal, the group said in a statement in phases,” he said. yesterday. “We have also taken initiatives to export the toiletries “We have started exporting our toiletries products products to some other countries. People of Oman, to Mizoram, Manipur and Meghalaya of India this the United Arab Emirates, Saudi Arabia, Qatar and month,” said Kamruzzaman Kamal, the group’s some African countries will get the products soon,” he director for marketing. added. (Courtesy: The Daily Star; Dated: 01st February, 2018)

Visitors to the Chamber

January 15: Ajay Sinha, Chief Operating Officer of HMCL Niloy Bangladesh January 25: Arjapriya Nandi, Managing Director, Wilh Loesch, Kolkata Limited (Hero Motor Cycle) met the IBCCI Secretary & CEO Jahangir accompanied by C. Rama Chandra Murthy of Surya Sankara Trading Pvt. Bin Alam and discussed matters of mutual interest and his company’s Ltd., Hyderabad visited the Chamber on the day and exchanged views membership of the Chamber in particular. with IBCCI Secretary & CEO Jahangir Bin Alam on matters relating to promotion in Bangladesh.

January 25: Sanyam Goel, Director, Med Tour Advisor of New Delhi February 05: Swapan Banerjee of Trinity Tradelink Ltd., Kolkata accompanied by his colleague Akhil Jain met the Chamber Secretary & accompanied by Arjapriya Nandy met the IBCCI Secretary & CEO Jahangir CEO, Jahangir Bin Alam on the day and exchanged views on matters Bin Alam on the day at the Chamber office and exchanged views on his relating to business promotion in Bangladesh. company’s business promotion in Bangladesh.

February 06: Anup Sahu from S. S. Exim, Chhindwara, India met the IBCCI February 12: G. M. Rakib Hasan, Researcher, Centre for Polici Dialogue Secretary & CEO Jahangir Bin Alam at the Chamber office and exchanged (CPD) met IBCCI Secretary & CEO Jahangir Bin Alam on the day at views on his company business promotion in Bangladesh. the Chamber office in connection with assessment of Bangladesh’s competitiveness status as part of a global survey jointly carried out by the World Economic Forum (WEF) popularly known as Davos Forum and CPD with a view to preparing Global Competitiveness Report.

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Editor: Jahangir Bin Alam India-Bangladesh Chamber of Commerce and Industry Rupayan Centre (16th floor), 72 Mohakhali C.A., Dhaka-1212, Phone: 9858527, 9887074-6 E-mail: [email protected] Web: www.ibcci.net