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IBCCI India-Bangladesh Chamber of Commerce & Industry 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: Pranab Mukherjee 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 Sheikh Hasina 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, Kolkata 11 Dhaka and Delhi to sign MoU on medicinal plants: Shringla 12 IBCCI Newsletter 1 IBCCI 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 Myanmar 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 Sri Lanka 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
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