According to the data released by DGCI&S, India’s apparel export values have declined sharply by 30.22 per cent in dollar terms and 25.98 per cent in rupee terms, during April-November period of FY ’21.
The country clocked US $ 7 billion from its apparel exports in the mentioned period, making a total loss of US $ 3.03 billion from the corresponding period of FY ’20.
After witnessing a surge of 6.32 per cent in October this year from October ’19, export values dropped in November by 1.19 per cent on yearly basis in dollar term to clock US $ 1.04 billion.
However, in rupee terms, the exports were still up by 2.64 per cent on Y-o-Y basis in November this year.
September remained the best month of the ‘Made in India’ garments as exports in this month valued US $ 1.19 billion, noting 10.22 per cent Y-o-Y growth.
April saw the worst export figures to start FY ’21 due to ongoing pandemic and lockdown across the country. The export in April this year valued just US $ 126.31 million, sinking 91 per cent from a year earlier.
Source: Apparel Online
A committee set up under the chairmanship of former union secretary G K Pillai to fix ceiling rates under a duty refund scheme - RoDTEP - for exporters is expected to submit the complete report in the next few weeks, a top government official said. Finance Secretary Ajay Bhushan Pandey said that immediately after getting the report, the RoDTEP (Remission of Duties and Taxes on Exported Products) rates would be notified.
"The G K Pillai committee has given a part report. Now the remaining report is expected within the next few weeks and as soon as the report comes, we will be able to notify RoDTEP rates. But those rates will be effective from January 1, 2021," he said.
The scheme would refund to exporters the embedded central, state and local duties and taxes that were so far not being rebated or refunded and were, therefore, placing India''s exports at a disadvantage.
The refund would be credited in an exporter's ledger account with customs and used to pay basic customs duty on imported goods. The credits can also be transferred to other importers.
An exporter desirous of availing the benefit of the RoDTEP scheme would have to declare his/her intention for each export item in the shipping bill or bill of export.
Availability of benefits under tax refund scheme - RoDTEP - for exporters would be subject to the conditions, restriction, ineligibility and fulfilment of procedural requirements as notified by the government.
The new scheme is replacing the MEIS (Merchandise Export from India Scheme).
In March, the government had approved the RoDTEP scheme for reimbursement of taxes and duties to exporters, with a view to give a boost to the country's dwindling outbound shipments.
The country's exports declined by about 16 per cent to about USD 200 billion during April-December this fiscal.
Source: The Economic Times
The economy has witnessed a “V-shaped recovery” since the June quarter debacle and is now riding against the Covid wave on the back of an effective management of the pandemic, the finance ministry claimed on Tuesday, exuding confidence in the strength and durability of the rebound. “The effective management of the Covid-19 spread despite the festive season and the onset of winter season, combined with sustained improvement in high-frequency indicators and V-shaped recovery along with easing of lockdown restrictions, distinguish Indian economy as one riding against the Covid-wave,” the department of economic affairs said in its report on the economy for December.
Non-food credit growth picked up strongly to touch 9.4% as of December 18, compared with 5.9% a month before, the report said. The growth is attributable to a “liquidity booster” and enhanced disbursement under the `3 lakh crore emergency credit line guarantee scheme. After a record slide of 23.9% in the June quarter, the year-on-year contraction in real GDP narrowed to 7.5% in the second quarter of this fiscal. This represented a 23% quarter-on-quarter surge in GDP growth, the finance ministry had recently said, terming it a “V-shaped recovery”.
Similarly, the liquidity situation remains comfortable as accumulation of dollars along with growth of currency in circulation has improved liquidity in the banking system despite the average daily net absorptions by RBI having risen from November to December. The spread between corporate bond yields and the benchmark G-secs yields has been narrowing in recent months, signalling improved risk perception of corporate bonds.
The report highlighted that India has succeeded in bending the Covid curve till now, with reducing weekly or daily infections, rising recovery rate (now at around 95%) and one of the world’s lowest case fatality rates. The active caseload has dropped below 2.5 lakh, placing India at the 10th position (in number of active cases). This is coupled by sustained numbers of tests-per-million, with cumulative test positivity rate below the World Health Organization’s norm of 8%, it said.
Source: The Financial Express
The World Bank estimates India’s growth to recover to 5.4% in FY22, as the rebound from a low base is offset by muted private investment growth given financial sector weaknesses.
Output is estimated to contract by 9.6% in fiscal year 2020-21, due to drop in household spending and private investment, even as high frequency data indicate recovery gaining momentum in services and manufacturing according to the World Bank’s January 2021 Global Economic Prospects report.
The bank noted that the informal sector, which accounts for four-fifths of employment, has also been subject to severe income losses during the pandemic, while in the financial sector non-performing loans were already high before the pandemic.
In South Asia, output contracted by an estimated 6.7% in FY21, reflecting the effects of the pandemic and nationwide lockdowns, particularly in Bangladesh and India. The bank has projected the region will grow 3.3% in FY22 assuming that a vaccine will be distributed on a large-scale from the second half of 2021 and the widespread resurgence in infections.
The bank also noted that the Covid-19 pandemic caused deep output losses and contributed to a sharp rise in poverty and unemployment in the region, but activity rebounded in the second half of 2021, led by industrial production and easing up of stringent lockdown.
GLOBAL FORECAST CUT TO 4% FOR 2021
Meanwhile, the World Bank downgraded its outlook for the global economy. The world economy is projected to grow by 4% this year, two-tenths lower than previously forecast.
Source: The Economic Times
After the deadline for filing tax returns by businesses has been extended till February 15, the company secretaries and chartered accountants are seeking extension of the Company Fresh Start Scheme (CFSS) 2020 and LLP Settlement Scheme (LSS) 2020 till March 31st, 2021.
Right from representations from professional bodies’ to a protest march to social media petitioning to filing a public interest litigation – the compliance and tax professionals have been actively seeking the extension by the Ministry of Corporate Affairs (MCA).
A public interest litigation has been filed in the Rajasthan High Court by the Centre for Social Work and Research Management Foundation citing Covid-related hindrances in filing documents by the offices of company secretaries, chartered accountants and tax practitioners as the reason for seeking extension.
The CFSS and LSS were introduced on April 1, 2020 for a period of six months offering a one-time opportunity to the defaulting companies and LLPs respectively to file the pending documents delayed with MCA without charging any additional fees. The schemes were extended till December 31st, 2020. “However, since the lockdown was lifted in October, the scheme effectively got implemented for the two months of November and December”, a Pune-based practising company secretary told ET. “While other regulatory bodies such as Sebi, Income Tax department and RBI extended the due dates for their filings, the MCA instead of extending the due dates for filing of documents amid lockdown, only introduced these schemes”, he informed.
“Many SMEs and LLPs could not complete their accounts and audits due to Covid. The filing of RoC returns can be completed only after receipt of audited financials” said Dhrumil Shah, a Mumbai-based practising company secretary. “In case of struck off companies, NCLT has to be approached to make them active and then fresh appointment of directors has to be done – the entire process takes a lot of time due to Covid”, he said.
Besides, the MCA portal crashed on December 31st on back of increased load on the last date of filing under CFSS and LSS. “MCA portal issues are repetitive as the capacity of the system is not adequate to take the load”, said a Mumbai-based company secretary.
#Extend_CFSS trended on Twitter on Monday as compliance professionals as well as professional bodies sought the extension of the schemes. Protest marches were held by practising company secretaries to represent the regional RoC offices simultaneously in Delhi, Mumbai, Ahmedabad and Jaipur on Monday. Citing difficulties and hardships faced by stakeholders, the Institute of Company Secretaries of India has made a representation to the secretary of MCA on December 24th seeking extension of the schemes till March 31st.
There was no comment received from the Registrar of Companies officials in Mumbai in this regard.
Source: The Business News.in
India’s economy is on course to perform better in the second half of the fiscal buoyed by sustained improvement in high frequency indicators while approval of emergency use of two Covid-19 vaccines will provide tailwinds to a V-shaped recovery, the government has said.
“The sustained improvement in high frequency indicators ignites optimism of an improved performance in the second half of the year,” the finance ministry said in the monthly economic review issued on Tuesday.
The impending vaccination against the coronavirus would spur momentum in economic activity globally, it said. Post-vaccination, resumption in economic activity and increased mobility are expected to drive the economic recovery in the aftermath of the pandemic, the government said.
So far, two vaccines – Serum Institute of India’s Covishield and Bharat Biotech’s Covaxin – have been approved for emergency use while various other vaccines have successfully hit trial status in India.
The country has prepared a blueprint of a mega vaccination drive with plans to first immunise 300 million health workers.
Source: The Economic Times
India’s economy is estimated to contract by 9.6 per cent in the fiscal year 2020-21, reflecting a sharp drop in household spending and private investment, and the growth is expected to recover to 5.4 per cent in 2021, the World Bank said on Tuesday.
In its Global Economic Prospects report, the World Bank said that the informal sector, which accounts for four-fifths of employment, has been subject to severe income losses during the COVID-19 pandemic.
“In India, the pandemic hit the economy at a time when growth was already decelerating. The output is estimated to contract by 9.6 per cent in Fiscal Year 2020/21, reflecting a sharp drop in household spending and private investment, it said.
“In India, growth is expected to recover to 5.4 per cent in 2021, as the rebound from a low base is offset by muted private investment growth given financial sector weaknesses, the bank said.
The informal sector, which accounts for four-fifths of employment, has also been subject to severe income losses during the pandemic. Recent high-frequency data indicate that the services and manufacturing recovery are gaining momentum, the report said.
“In the financial sector, non-performing loans were already high before the pandemic,” it said.
In Pakistan, the recovery is expected to be subdued, with growth at 0.5 per cent in fiscal 2020/21. Growth is projected to be held back by continued fiscal consolidation pressures and service sector weakness, it said.
In the rest of South Asia, the economic impact of COVID-19 has been somewhat less severe but still significant. Economies that depend heavily on tourism and travel have been especially hard hit. That includes the Maldives, Nepal, and Sri Lanka, the report said.
“Regional economic activity is estimated to have contracted by 6.7 per cent in 2020, led by a deep recession in India, where the economy was already weakened before the pandemic by stress in non-bank financial corporations,” the World Bank said.
In Bangladesh, which had been one of the fastest-growing emerging markets and developing economies prior to the pandemic, growth is estimated to have decelerated to two per cent in FY2019/20.
In Pakistan, growth is estimated to have contracted by 1.5 per cent in FY2019/20, reflecting the effects of localised COVID-19 containment measures as well as the impact of monetary and fiscal tightening prior to the outbreak, the bank said.
South Asia is projected to grow by 3.3 per cent in 2021.
“Weak growth prospects reflect a protracted recovery in incomes and employment, especially in the services sector, limited credit provisioning constrained by financial sector vulnerabilities, and muted fiscal policy support,” it said.
The forecast assumes that a vaccine will be distributed on a large scale in the region starting the second half of 2021 and that there is no widespread resurgence in infections, it added.
Source: The Financial Express
To support the weavers, the Telangana State Government will set up a mini textile park at Kodakandla in Warangal. The initiative is expected to ensure job opportunities for around 20,000 weavers’ families.
As per the Industries Minister of the State, K.T. Rama Rao, Kodakandla has been selected for its easy availability of work force.
The minister said, “Scores of skilled weavers are available in the area and they migrated to other States due to absence of employment opportunities.”
The Minister also assured that the ongoing welfare schemes for weavers would continue uninterrupted.
It is important to mention here that the State Government is running some beneficial schemes for the weavers like the Cheyutha scheme, which helped weavers overcome the difficulties during the COVID-19 pandemic and the relaxations to the tune of Rs. 95 crore extended under the scheme assisted nearly 25,000 families.
He instructed the concerned officials to complete the report for allocations that were needed for handloom and textile sector in the next budget at the earliest.
Source: Apparel Online
The rupee fell to 73.18 on Tuesday, losing 0.2% to the dollar, the most in seven weeks amid concerns India’s trade deficit would widen further in the coming months as the economy recovers.
The currency markets also apprehend foreign flows into the equity markets could slow after record levels of buying; so far in January, however, FPIs have been big buyers. The yield on the benchmark remained steady at 5.82% with the markets reassured the continuing open market operations by RBI would keep the yield sub-6%.
Led by HDFC, the stocks of financials soared, sending the Bank Nifty to a one-year high and the Nifty close to 14,200. The earnings season kicks off on January 8 with TCS announcing Q3FY21 results.
Source: The Financial Express
Exports from special economic zones (SEZs) and export oriented units (EOUs) can take a hit if the new Remission of Duties or Taxes on Export Products (RoDTEP) scheme, to be applicable from January 1, is not extended to units in the zones and may lead to their relocation in other countries, the Export Promotion Council for EOUs and SEZs (EPCES) has stated.
In letters addressed to Finance Minister Nirmala Sitharaman and Commerce & Industry Minister Piyush Goyal, the council also proposed that till RoDTEP rates are announced, the older incentive scheme, Merchandise Export from India Scheme (MEIS) should be continued.
“The implementation mechanism makes it clear that RoDTEP benefits may not be available to the exporters from SEZ units and EOUs. This needs to be revisited immediately. SEZs and EOUs contribute about 30 percent of the country’s total exports,” Bhuvnesh Seth, Officiating Chairman, EPCES, wrote in letters to Sitharaman and Goyal.
The Finance Ministry, in a notification on December 31, announced the implementation of the RoDTEP scheme from January 1 and stated that the rates for input duty remission for individual sectors would be notified soon. It added that the notified rates, irrespective of the date of notification, shall apply with effect from January 1 to all eligible exports of goods.
The RoDTEP scheme has replaced the MEIS scheme which expired on December 31, 2020. The MEIS was withdrawn as it had been identified as an export incentive in violation of World Trade Organisation rules by a dispute settlement panel.
Domestic Inputs
Units in SEZs and EOUs also procure domestic inputs and bear the taxes and duties covered under the new scheme. There is no justification for depriving the SEZ and EOU exporters from the benefit of RoDTEP as MEIS benefits will anyway not be available from January 1, 2021, the letter pointed out. “Therefore, not covering SEZ units and EOUs under RoDTEP would put such exporters to great disadvantages and may lead to shifting of such units abroad and would be against the ‘Atmanirbhar Bharat’ initiative of the Prime Minister,” it said.
Further, it would be desirable that RoDTEP rates should be announced well in advance so that it could be factored by the exporters while finalizing or quoting new order contracts, the Council proposed. “Till then, MEIS should be continued in such sectors where RoDTEP rates are not announced,” the letter added.
Since the remission rates under RoDTEP are based on actual input taxes paid by each sector at various stages of production, the calculation is proving to be time consuming.
Source: The Hindu Business Line
As the COVID-19 vaccine started rolling out in many countries, the World Bank expects that the global economy will expand four per cent in 2021, but will still remain more than five per cent below its pre-pandemic trend.
“The global economy appears to be emerging from one of its deepest recessions and beginning a subdued recovery,” World Bank President David Malpass said on Tuesday in a forward to the Global Economic Prospects report, according to which a recovery will likely be subdued, unless policy makers move decisively to tame the pandemic and implement investment-enhancing reforms.
Although the global economy is growing again after a 4.3 per cent contraction in 2020, the pandemic has caused a heavy toll of deaths and illness, plunged millions into poverty, and may depress economic activity and incomes for a prolonged period.
Top near-term policy priorities are controlling the spread of COVID-19 and ensuring rapid and widespread vaccine deployment. To support economic recovery, authorities also need to facilitate a re-investment cycle aimed at sustainable growth that is less dependent on government debt, the report said.
“While the global economy appears to have entered a subdued recovery, policy makers face formidable challenges – in public health, debt management, budget policies, central banking and structural reforms – as they try to ensure that this still fragile global recovery gains traction and sets a foundation for robust growth,” said Malpass.
“To overcome the impacts of the pandemic and counter the investment headwind, there needs to be a major push to improve business environments, increase labour and product market flexibility, and strengthen transparency and governance,” he said.
The collapse in global economic activity in 2020 is estimated to have been slightly less severe than previously projected, mainly due to shallower contractions in advanced economies and a more robust recovery in China.
In contrast, disruptions to activity in the majority of other emerging markets and developing economies were more acute than expected, the Bank said in its report.
“Financial fragilities in many of these countries, as the growth shock impacts vulnerable household and business balance sheets, will also need to be addressed, Vice President and World Bank Group Chief Economist Carmen Reinhart said.
According to the report, global growth is projected to moderate to 3.8 per cent in 2022, weighed down by the pandemic’s lasting damage to potential growth. In particular, the impact of the pandemic on investment and human capital is expected to erode growth prospects in emerging market and developing economies (EMDEs) and set back key development goals.
The global recovery, which has been dampened in the near term by a resurgence of COVID-19 cases, is expected to strengthen over the forecast horizon as confidence, consumption, and trade gradually improve, supported by ongoing vaccination, the report said.
Although aggregate EMDE growth is envisioned to firm to an average of 4.6 per cent in 2021-22, the improvement largely reflects China’s expected rebound. Minus China, the recovery across EMDEs is anticipated to be more muted, averaging 3.5 per cent in 2021-22, as the pandemic’s lingering effects continue to weigh on consumption and investment, the World Bank said.
In his forward to the report, Malpass said that making the right investments now is vital both to support the recovery when it is urgently needed and foster resilience.
“Our response to the pandemic crisis today will shape our common future for years to come. We should seize the opportunity to lay the foundations for a durable, equitable, and sustainable global economy,” he said.
Source: The Financial Express
Whether in man-made fabric (MMF), machine embroidery, digital printing or circular knitting, Surat has proven history of successfully initiating and excelling in different segments of the textile industry. And moving further, this city of entrepreneurs is geared up to tap the huge business opportunities of technical textiles. There are a few significant reasons why Surat is now focusing more on technical textiles. One of them is from the Government side as MoT is now fully dedicated to technical textiles. For example, MoT’s National Technical Textile Mission with total outlay of Rs.1,480 crore and PLI Scheme, with focus on promotion of 40 MMF apparel and 10 technical textiles lines to create 60-70 global champions, has financial outlay of Rs. 10,683 crore over a period of 5 years.
Industry players of this segment are now confident that they will get Government support. And this product segment is comparatively easy for Surat as the city has an edge of already available basic infrastructure and resources.
Being a leading MMF hub and having strength in producing a variety of products, Surat has the basic infrastructure required for the technical textiles industry. Ashish Gujarati, VP, Southern Gujarat Chamber of Commerce and Industry (SGCCI) and a leading textile player of the Surat says, “Around 70 per cent of products in technical textiles use MMF which is the core strength of Surat. Secondly, we do have technical skills and required machinery for such products is already available and knowhow is also there.”
He further adds that the push is now to do value addition in the available fabric as Government schemes are like a kick-start for entrepreneurs. Currently along with speciality fabrics like for rucksack, tents, roof awnings, pond liners, filtration fabric, reusable PPE fabrics, many companies in and around Surat are manufacturing products like wading moulded automotive, luggage, sanitary napkins, underpads, wipes and soft cast padding, etc.
Ashish feels that the industry in Surat is decentralised, so it is also cost-competitive as well as has high efficiency. He says, “Be it coating or lamination on the fabric or any other development, there are dedicated and specialised firms which enhance the scope for these compared to anybody else.”
The entrepreneurs of the city are always keen to explore new areas of growth and they are ready to diversify compared to others. And many of them have enough resources (funds) with them too. These aspects motivate them to add new product offerings in their product basket and to focus more towards segments like technical textiles which is more or less not explored by textile companies as the latter are still more inclined towards their traditional business.
Sahil Saraf, VP-Marketing, Nobletex (a group company of Pratibha Group) believes that there is an ecosystem in Surat that supports technical textile industry be it specifically required infrastructure, supportive policies of State Government, skilled labour.
Nobletex is a leading manufacturer of luggage fabric which manufactures mainly on water-jet looms and Surat has a good number of such looms. The company, catering to domestic as well as an export market, is expecting good growth in the long term.
Support structure
Specific to technical textiles, Surat has required support structure also and that too in technical as well as marketing front. The prestigious body of Surat, SGCCI recently has submitted the expression of interest (EOI) for setting up of the Export Promotion Council (EPC) for technical textiles. The organisation has enough resources to work effectively for the technical textile segment.
To make the firms more organised, attract new players in this segment, increase the know-how and to widen market reach, SGCCI is geared up and is in the process to organise various seminars and events dedicated to technical textiles.
Associated with the SGCCI’s technical textile committee and Director of Parul Silk Mills & Artline, Amish Shah informs, “We are in the process to get the support of various organisations like DRDO etc., which can further improve our offerings. Surat’s target is to offer more such products that are being imported from China.”
Amish’s company is into the production of filter fabric and expects good growth in the next few years.
Surat also has The Man-Made Textile Research Association (MANTRA) which is the designated centre of excellence in technical textiles by the State Government. The same is also marked as a centre of excellence in Agrotech by the Central Government in the sectors namely coating and lamination, non-woven and converter technology.
An important point here to underline is that many SMEs are anyhow involved in the extensive product range under the gamut of technical textiles. Majority of them are unorganised or semi-organised. SGCCI and MANTRA can be instrumental if these firms take the initiative to move further. If SGCCI’s EOI for EPC gets approved, it will further boost the SMEs as well as Surat in technical textiles. Currently around 10 per cent of the overall textile business of Surat is from technical textile segment which has scope to grow multi-fold in future.
Gujarat’s policies are quite supportive for the industry and technical textiles (excluding woven sacks in any form of packtech) is also a focus area in the state textile policy. It offers an interest subsidy of 6 per cent for technical textiles units. The state’s textile entrepreneurs also expect capital subsidy and cheap electricity from the State Government.
To support Surat as well as the overall technical textile industry, entrepreneurs feel that there is a need to streamline the HSN codes of this industry. By doing this, there will be more ease in business. It is pertinent to mention here that almost 2 years ago, Government issued 207 HSN codes for technical textiles.
Technical textiles is a sunrise sector for India and there can’t be a better time and opportunity for the textile sector to go ahead with this. And with all things in favour of Surat, one can hope that the city will touch awesome growth in this segment.
Source: Apparel Online
The Cabinet Committee on Parliamentary Affairs (CCPA) has recommended that the Budget session of Parliament commence from January 29 and conclude on April 8. According to the Committee’s recommendation, while Part 1 of the Budget session would be held from January 29 to February 15, Part 2 would be from March 8 to April 8.
President Ram Nath Kovind would address the joint sitting of the two Houses of Parliament on January 29, a Friday, and the Union Budget would be presented on February 1, sources said citing the CCPA recommendations.
All Covid-related protocols would be followed during the session, the sources said. The final decision on the commencement of the session will be taken by the Union Cabinet.
The Winter Session of Parliament, which generally begins in the last week of November, was cancelled in the view of the ongoing Covid-19 pandemic amid rising demands from the opposition to hold the Sessions to discuss farm laws.
This Budget session will be much awaited as this will the first Budget of the NDA government amid the pandemic. On being asked whether this Budget will have special provision for Covid-19 vaccine, finance minister Nirmala Sitharaman at Hindustan Times Leadership Summit 2020 said that the cost per dose and other details are required before allocating any fund for vaccines.
Addressing CII Partnership Summit 2020 in December, Nirmala Sitharaman said the Budget will be like never before, a Budget which is being made after a pandemic. The finance minister also held a pre-Budget consultation with representatives of industry, services and trade.
Source: The Hindustan Times
The Reserve Bank of India (RBI) on Tuesday announced the operationalisation of the payment infrastructure development fund (PIDF) scheme, which is intended to subsidise deployment of payment acceptance infrastructure in tier-3 to tier-6 centres, with a special focus on the north-eastern states of the country. The regulator prescribed details of contribution to the fund and sought to incentivise the usage of payment devices.
An advisory council (AC) under the chairmanship of RBI deputy governor BP Kanungo has been constituted for managing the PIDF. The fund will be operational for three years effective from January 1, 2021 and may be extended for two more years. The PIDF presently has a corpus of Rs 345 crore, with Rs 250 crore contributed by the RBI and Rs 95 crore by the major authorised card networks in the country.
The authorised card networks shall contribute in all Rs 100 crore. The card issuing banks shall also contribute to the corpus based on the card issuance volume — covering both debit and credit cards — at the rate of `1 and `3 per debit and credit card issued by them, respectively. “It shall be the endeavor to collect the contributions by January 31, 2021,” the RBI said, adding that any new entrant to the card payment ecosystem shall contribute an appropriate amount to the PIDF.
Besides, the PIDF shall also receive annual contributions from card networks and card issuing banks. Card networks will have to chip in with one basis point (bps), or 0.01 paisa per rupee of transaction. Card issuing banks will have to contribute one bps and two bps —0.01 paisa and 0.02 paisa — per rupee of transaction for debit and credit cards respectively. They must also contribute Rs 1 and Rs 3 for every new debit and credit card issued by them during the year. The RBI shall contribute to yearly shortfalls, if any.
“While setting parameters for utilisation of funds, the focus shall be to target those merchants who are yet to be terminalised (merchants who do not have any payment acceptance device),” the RBI said in a notification. The AC shall devise a transparent mechanism for allocation of targets to acquiring banks and non-banks in different segments and locations. Tentatively, tier-3 and tier-4 centres will be allocated 30% of the acceptance devices, tier-5 and tier-6 centres will get 60% and the north eastern states will be given 10%.
Merchants engaged in services such as transport and hospitality, government payments, fuel pumps, public distribution system (PDS) shops, healthcare and kirana shops may be included, especially in the targeted geographies. Multiple payment acceptance devices and infrastructure supporting underlying card payments, such as physical PoS, mPoS, GPRS , public switched telephone network (PSTN) and QR code-based payments will be funded under the scheme.
“As the cost structure of acceptance devices vary, subsidy amounts shall accordingly differ by the type of payment acceptance device deployed. A subsidy of 30% to 50% of cost of physical PoS and 50% to 75% subsidy for Digital PoS shall be offered,” the RBI said. Payment methods that are not interoperable shall not be considered under the PIDF. The subsidy shall not be claimed by applicants from other sources like the National Bank for Agriculture and Rural Development (Nabard), etc. In case other mechanisms exist for providing subsidy or reimbursing cost of deployment of acceptance infrastructure, no reimbursement shall be claimed from PIDF.
The subsidy shall be granted on a half-yearly basis, after ensuring that performance parameters are achieved, including conditions for ‘active’ status of the acceptance device and ‘minimum usage’ criteria, as defined by the AC. The minimum usage shall be termed as 50 transactions over a period of 90 days and active status shall be minimum usage for 10 days over the 90-day period. The subsidy claims shall be processed on a half-yearly basis and 75% of the subsidy amount shall be released. The balance 25% shall be released later subject to the status of the device being active in three out of the four quarters of the ensuing year.
The scheme is on reimbursement basis; accordingly, the claim shall be submitted only after making payment to the vendor. The maximum cost of physical acceptance devices eligible for the subsidy will be Rs 10,000, including one-time operating costs up to Rs 500. The maximum cost of digital acceptance devices eligible for subsidy will be Rs 300, including a one-time operating cost up to Rs 200.
The implementation of targets shall be monitored by the RBI with assistance from card networks, the Indian Banks’ Association (IBA) and the Payments Council of India (PCI). Acquirers shall submit quarterly reports on the achievement of targets to the RBI. Acquirers meeting or exceeding their targets well in time and/or ensuring greater utilisation of acceptance devices in terms of transactions shall be incentivised. Those who do not achieve their targets shall be disincentivised, by scaling up or down the extent of reimbursement of subsidy.
Source: The Financial Express
Over 5 crore income tax returns (ITRs) for fiscal year 2019-20 have been filed till January 4, the Income Tax Department said on Tuesday. The government has extended the ITR filing deadline for individuals till January 10, and for companies till February 15.
"Over 5.01 crore Income Tax Returns for AY 2020-21 have already been filed till 04th of January, 2021," the Income Tax Department said in a tweet.
The deadline for individuals to file ITRs for 2018-19 was August 31, 2019 and over 5.63 crore ITRs were filed.
An analysis of the data showed that filing of tax returns by individuals for 2019-20 has slowed in the current year, while filing by businesses and trusts have increased.
Over 2.7 crore ITR-1 have been filed till January 4, lower than 3.09 crore filed till September 4, 2019.
With regard to ITR-4, it said, 1.04 crore returns have been filed till January 4 as compared to 1.28 crore filed till September 4, 2019.
Returns in ITR-1 Sahaj are filed by individuals whose total income does not exceed Rs 50 lakh, while form ITR-4 Sugam is meant for individuals, Hindu Undivided Families (HUFs) and firms (other than Limited Liability Partnership ) having a total income of up to Rs 50 lakh and having presumptive income from business and profession.
Over 38 lakh ITR-2 (filed by people having income from residential property) were filed till September 4, 2019. ITR-5 (filed by LLP and Association of Person) filings stood at 8.30 lakh, while ITR-6 (by businesses) filings were at 4.03 lakh.
ITR-7 (filed by persons having income derived from property held under trust) filings stood at 1.21 lakh till September 4, 2019.
Source: The Economic Times
Whenever India takes a seat at the United Nations Security Council (UNSC), there is excitement about the possibility of it translating into permanent membership. When holding one of the rotating seats, it is
a sensible ambition to make the case, through diplomatic accomplishments, for being a permanent member. But expanding SC is a tortuous process. At present, the window of opportunity for SC reform is closed. Not one of the Permanent Five (P5) members is interested in its expansion. After a year of battling with nature, much of the world sees multilateral responses to climate and health as the heart of UN reform and SC expansion as a quixotic quest.
India’s agenda sensibly focuses on what is optically useful and realistically possible. New Delhi has a traditional multilateral agenda, which revolves around counterterrorism, peacekeeping, trade, and, negatively, opposition to an intrusive human rights regime. Much of this remains relevant, but the coming years should allow India to take up new issues. Climate, public health, maritime security and digital standards stand out among the century’s new challenges. Much of this is on the fringes of the UN, but there will be considerable spillover. Global climate cooperation still uses the UN Framework Convention on Climate Change as its foundational understanding. India has made nascent multilateral contributions in this space, such as the International Solar Alliance, but needs to become more involved in rules-setting. New Delhi has called for reform of the World Health Organization, but is yet to provide details. Maritime security is increasingly intertwined with the need to uphold the UN Law of the Sea against the revanchist tendencies of China. Global trade will increasingly be about data, a domain where India’s capabilities and policies will win points with other developing countries.
Whatever the opposition put up by China, if India shows it has the diplomatic skills to get other countries to work together, the case for it being a permanent member will become irrefutable. Multilateralism is the most difficult form of diplomacy, and SC membership, even if non-permanent, is among the best platforms to display India’s abilities.
Approval of COVID vaccine lends strength to optimism on health, economic fronts: FinMin report
Approval of the long-awaited COVID-19 vaccine provides strength to the optimism on health and economic fronts, the Finance Ministry said in its monthly economic report.
“The effective management of COVID-19 spread despite the festive season and onset of the winter season, combined with sustained improvement in high-frequency indicators and V-shaped recovery along with easing of lockdown restrictions distinguish Indian economy as one riding against the COVID-wave,” the report said.
The new year, it said, has dawned with the approval of the long-awaited COVID-19 vaccine and initiation of vaccination drives in various countries.
“This gives strength to the optimism on both health and economic fronts despite continuing surge in global cases and the potential challenge of a mutant strain,” the Monthly Economic Review for December said.
India, the report said, “has been successful in bending the COVID-curve till now, with reducing weekly/daily infections, rising recovery rate (now at around 95 per cent) and one of the world’s lowest case fatality rates”.
The downside risk, however, remains due to the spread of the UK variant and fatigue from social distancing guidelines, it said, adding the emphasis on continued observation of ‘COVID appropriate’ behaviour with the due exercise of caution and surveillance needs to be sustained.
Sharing improvement in some of the high-frequency data, the report said the sustained spurt in commercial and industrial activity was further corroborated by continued growth in PMI manufacturing, power demand, persistent improvement in E-way bills generated and highway toll collection rising above pre-COVID levels.
Monthly GST collections attained their record levels in December.
The gross GST revenue collected in December 2020 was Rs 1,15,174 crore, the highest since the introduction of Goods and Services Tax from July 1, 2017.
The liquidity situation remains comfortable as the accumulation of dollars along with the growth of currency in circulation are enhancing liquidity in the banking system despite the average daily net absorptions by the RBI rose in December compared to the preceding month, the report said.
The credit growth improved sharply as reflected in strong non-food credit rise and overall credit growth, thanks to the Emergency Credit Line Guarantee
Scheme (ECLGS), which continues to support robust credit disbursements to MSMEs, with Rs 2.05 lakh crore sanctioned to 80.93 lakh borrowers under ECLGS 1.0.
Extension of ECLGS to 26 stressed sectors is a further boost to MSME credit growth. Credit growth is further corroborated by a sharp rise in the incremental credit deposit ratio of banks, as per the report.
Source: The Financial Express
Gujarat textile industry has been witnessing a rise both in its export and domestic orders, says Gaurang Bhagat, President of the Ahmedabad-based New Cloth Market and Trade Committee Chairman of Gujarat Chamber of Commerce & Industry (GCCI).
After facing huge financial challenges from April to July period this financial year due to pandemic and lockdown, the state’s textile industry started seeing demand from August onwards as queries began pouring in both from domestic and international markets.
“Most of the textile manufacturers got significant orders from all parts of India by Diwali because of which they were able to wipe out unsold inventories as well as the entire textile value chain experienced unprecedented business opportunities, especially in hubs like Surat and Ahmedabad,” commented Gaurang.
The products which have been experiencing escalated demand are home textile; cotton and synthetic fabric; and yarns.
According to Gaurang, many textile importers from the USA, Europe, Australia and New Zealand have decided to move from China, Pakistan and Turkey and shift their textile sourcing base to India in 2020.
“The state’s textile industry is also getting benefits from the online textile exhibition FABEXA 2020 which saw presence of 52 countries and the efforts of the organisers seem to be translating into real business,” informed Gaurang.
The companies like Welspun India and Nanadan Terry have also endorsed what Gaurang has said.
Sanjeev Sancheti, CFO, Welspun India, said that the domestic textile players are at an advantageous position seeing the decisions of the global brands of not taking risk and be dependent on any single country for sourcing needs in pandemic.
Anand Prakash, GM of Ahmedabad-based Nandan Terry, asserted that the retailers in Europe, USA and other potential markets have run out of inventories and need stocking for 4 to 5 months, which is a huge quantity.
“Pakistan- and Turkey-based textile suppliers have capacity restrictions, while China has been facing trust deficit due to the outbreak of COVID-19. Thereby, the Indian textile industry is benefitting,” opined Prakash.
Source: Apparel Online
Prime Minister Narendra Modi will on Friday brainstorm with top economists the measures that may be included in the upcoming budget to pull the economy out of contraction.
"Meeting is to seek views of economists on steps needed in the budget," said a person privy to the development. Modi has already held preliminary discussions with finance ministry officials on the contours of the upcoming budget that is to be presented on February 1.
This meeting assumes significance as the government gets into top gear to finalise proposals for the budget being presented and uncertainty on multiple fronts caused by Covid-19 pandemic and the need to sustain the sharp prebound.
India’s economy contracted at a lower 7.5% rate in the July-September quarter after shrinking a deep 23.9% in the April-June quarter when much of the country was locked down to contain the coronavirus pandemic.
Finance Minister Nirmala Sitharaman has herself said that the upcoming budget would be like no other in the past. “Hundred years of India wouldn’t have seen a budget being made post a pandemic like this,” the minister had said at an event last month.
The government has announced three packages since March after Covid-19 outbreak, but these have been criticized for lacking in the much needed demand stimulus.
The upcoming budget is being keenly watched for measures to sustain demand and strengthen recovery.
Focus is likely to be on ramping up infrastructure including healthcare and lifting country’s manufacturing with emphasis on self-reliance. Many experts have favoured greater fiscal support from the government to sustain demand recovery.
“During all the past crisis, aggregate government spending had ramped up in a counter-cyclical manner, supporting households and demand in the economy. That’s not the case this time.” Edelweiss said in a recent report.
“Relative to other countries at well. India’s fiscal response so far has been slow, even though GDP contraction is large.”
Source: The Economic Times
An increase in credit may not always find its way towards investments as business entities may use credit lines to finance their current liabilities, a Reserve Bank paper said on Tuesday.
The paper further says that banks respond to changes in money market spreads faster and better than changes in policy rates, which are announced by the RBI bi-monthly.
“…in addition to slow or lagged monetary policy transmission, an increase in credit may not always find its way towards increasing investments. Firms may use their credit lines to finance their current liabilities rather than undertaking capital formation,” said the paper written by Saurabh Ghosh and Abhinav Narayanan, both officials of the Reserve Bank of India (RBI).
Monetary policy transmission has remained a pivotal topic of interest across all central bankers. Empirically, however, it is hard to disentangle the effects of a policy change on firms’ investment demand, banks’ credit supply and their interactions.
The paper uses a unique rm-bank matched dataset from India to provide new insights into the monetary policy transmission mechanism.
The findings of the paper indicate that monetary policy transmission works with a lag for bank lending. For firms, aggregate demand conditions in the market may drive investment demand which may, in turn, be correlated with the monetary policy easing cycle.
However, final credit flows from banks depend on the liquidity position of banks that the firms are attached to. These findings indicate the importance of banks’ liquidity in addition to the balance sheet channel for improving the efficacy of monetary policy transmission.
The central bank said the views expressed in these papers are those of authors and not of the RBI.
Source: The Financial Express
Prime Minister Narendra Modi must listen to the dissenting voices and speak more often in Parliament, using it as a forum to disseminate his views to convince the Opposition and inform the nation, felt former president Pranab Mukherjee.
According to Mr Mukherjee, the mere physical presence of the prime minister in Parliament makes a tremendous difference to the functioning of this institution.
"Whether it was Jawaharlal Nehru, Indira Gandhi, Atal Bihari Vajpayee or Manmohan Singh, each of these former PMs made their presence felt on the floor of the House.
"PM Modi, now in his second term, must take inspiration from his predecessors and provide visible leadership, through his enhanced presence in Parliament to avoid situations that had precipitated the parliamentary crisis we witnessed in the first term," Mr Mukherjee wrote in his memoir "The Presidential Years, 2012-2017" which he completed before his death last year. The book, published by Rupa Publications, released on Tuesday.
PM Modi, Mr Mukherjee said, must "listen to the dissenting voices and speak more often in Parliament. He must use it as a forum to disseminate his views to convince the Opposition and inform the nation".
He said during the UPA years, he would resolve difficult issues by remaining in constant touch with the leader of the Opposition and senior leaders of both the UPA and the NDA.
Source: Ndtv
Tirupur-based Garment Mantra Lifestyle Ltd. (erstwhile Junction Fabrics & Apparels Ltd.) has taken diversification steps in order to widen its horizons beyond garments. The company is diversifying into fashion accessories, electronics and home appliances.
With diversification plans in place, the company has entered its first bulk order purchase worth of Rs. 11 crore, at a steep and huge discount to its MRP.
The company is in the final process of acquiring Twenty Twenty Trading LLP ‘Price Mantra’, which is into the retailing business. ‘Price Mantra’ USP is to source the branded products at much cheaper rate to the MRP.
The bulk order procurement of Rs. 11 crore includes products like garments, electronics, home appliances as well as fashion accessories.
Prem Aggarwal, CMD of the company, said “We are delighted to update our stakeholders about our diversification into the new product segments. This is the major leap forward in order to diversify our business. We are very optimistic about this model where we have planned to sell these products through our platforms, B2B as well as B2C. Moreover, we are in the process of acquiring our group companies and that will help us in expanding our business substantially in coming years.”
Source: Apparel Online
Bangladesh has the ability to enhance the credit-based spending to support Covid-affected sectors as the country is ‘at low risk in terms of vulnerable debt sustainability.’
A policy note, prepared by Bangladesh Bank, made the observation mentioning that the country has managed public debt to Gross Domestic Product (GDP) ratio in a conservative way.
“The country now can afford more borrowing to address the economic fallout from Covid-19 pandemic,” it argued adding that Bangladesh has experienced low debt to GDP ratio of around 34 per cent since last few years.
“Therefore, Bangladesh can increase their expenditure, if needed, at significant level through domestic borrowing and foreign loans to support affected sectors of the economy,” the policy note argued.
Titled as ‘COVID-19 Crisis and Fiscal Space for Bangladesh Economy: A Comparative Analysis with South Asian Countries,’ the policy note was released by a team of Chief Economist’s Unit of the central bank. The team members are: Dr Md Ezazul Islam (General Manager), Dr Md Salim Al Mamun (Deputy General Manager) and Raju Ahmed (Deputy Director).
The policy note also recommended that the government may improve tax compliance with proper implementation of tax reform policies for improving tax-GDP ratio in the near and medium term.
It also pointed out that Bangladesh maintained around 10 per cent of tax to GDP ratio, which is lower than all other south Asian countries, except India.
Source: The Financial Express, Bangladesh
UK Prime Minister Boris Johnson announced another national lockdown from early Wednesday. The lockdown was declared following a continuing spike in the number of new Covid-19 cases. In an address to the nation, Johnson said the variant has been spreading at an ‘alarming rate’. The country registered over 50,000 daily infections for seven consecutive days. The restrictions with the main message to ‘stay at home’ will last for six weeks. Restrictions include closure of schools, not venturing out of homes unless emergency and working from home. This is the third nationwide lockdown in the United Kingdom since March 2020. It was re-imposed in November, when cases rose after a dip over the summer months. The overall deaths in the UK is likely to reach 100,000 by the end of January or early February.
Source: The Hindustan Times
Britain offered a 4.6 billion pound ($6.2 billion) support package for businesses on Tuesday to soften an expected recession caused by a surge in COVID-19 cases that has prompted a third national lockdown.
Prime Minister Boris Johnson announced the lockdown on Monday, saying a highly contagious coronavirus variant risked overwhelming the health service within 21 days.
Most people must work from home and schools have closed for almost all pupils. Hospitality venues must stay shut, as well as non-essential shops.
Britain’s economy now looks likely to tip back into recession – shrinking in the final quarter of 2020 and the first quarter of 2021 – after suffering a record 25% fall in output in the first two months of lockdown in 2020.
The new downturn is expected to be far smaller, with most businesses now much better adapted to working remotely and construction sites and factories expected to stay open.
But economists at J.P. Morgan still predicted a hefty 2.5% fall in output for the first three months of 2021.
Finance minister Rishi Sunak has previously announced emergency help for the economy worth 280 billion pounds, including a massive job protection scheme that will run until the end of April.
Under Tuesday’s additional measures, retail, hospitality and leisure companies will be able to claim one-off grants worth up to 9,000 pounds to get them through the coming months, costing up to 4 billion pounds in total, along with 600 million pounds of grants for other businesses.
“This will help businesses to get through the months ahead – and crucially it will help sustain jobs, so workers can be ready to return when they are able to reopen,” Sunak said.
Government forecasters in November predicted almost 400 billion pounds of borrowing this financial year, equivalent to 19% of GDP – a peacetime record but one that, at least for now, can be financed at record-low interest rates.
The Bank of England is buying government debt and in November ramped up its asset purchase programme to almost 900 billion pounds with the intention of using it throughout 2021.
However, the British Chambers of Commerce said Sunak’s “drip-feed approach” to support for businesses would see many go to the wall as they would not qualify for sufficient assistance.
“While this immediate cashflow support for business is welcome, it is not going to be enough to save many firms,” BCC director general Adam Marshall said.
Britain suffered the most severe contraction of any Group of Seven economy in the second quarter of 2020 and the Organisation for Economic Cooperation and Development has estimated Britain’s recovery by the end of this year will be the slowest of all its member countries except Argentina.
Source: The Financial Express
Foreign aid disbursement by development partners jumped by 34 per cent in July-November, thanks to the release of a budgetary support by Japan, officials said on Monday.
Economic Relations Division (ERD) statistics showed that the development partners, including the World Bank, the Asian Development Bank and Japan, disbursed $1.97 billion worth loans and $69.44 million in grants during the first five months of fiscal year 2020-21.
The Japanese development partner -JICA-alone disbursed $320 million budget aid earlier in the fiscal year, they added.
In the same period of FY2020, the foreign donors released loans worth $1.54 billion and grants worth $82.32 million, the ERD provisional data said.
But foreign aid commitment during the first five months of the current fiscal dipped by 26 per cent to US$1.71 billion compared with the same period last year, the provisional data showed.
The foreign lenders released US$2.05 billion worth medium-to-long-term loans and grants during July-November period, according to the ERD data. During the same period in FY2020, the disbursement totalled $1.62 billion.
A senior ERD official said the COVID 19 has affected foreign aid commitment from development partners as the global movement has decreased.
"The donors failed to send their missions to Bangladesh for completing their work, which affected the aid confirmations," he added.
According to the ERD data, out of the US$1.71 billion worth of aid commitment during Jul-Nov period, the foreign development partners signed loan deals worth $1.41 billion and grant deals worth $301.05 million with Bangladesh.
The ERD official told the FE that since the foreign aid in the pipeline is available, its disbursement would go up upon higher project execution performance by the implementing agencies under the Annual Development Programme (ADP).
According to the Implementation Monitoring and Evaluation Division (IMED), the government ministries and agencies spent 16 per cent of their foreign aid allocations, 3.0 percentage points lower than that of the internal resource outlay during July-November period.
The public bodies spent Tk 116.86 billion, 16 per cent of their total Tk 705.02 billion foreign aid (project aid) allocations in the ADP, during July-November period this FY2021.
Another senior ERD official said, "Since some big loan deals were signed in FY2020, commitment was higher compared to the same period this fiscal."
But it is good news that aid disbursement has picked up in July-Nov period this fiscal compared to the same period last FY2019.
The ERD official said, "Although commitment has been showing a downward trend in the first five months, it will pick up in the last half of the current fiscal."
Meanwhile, the government has served debt worth $746.71 million during Jul-Nov period against the total outstanding long-term loans, the ERD data showed.
The debt servicing in July-November period of FY2020 was $687.89 million, $58.82 million lower than that in the same period in the previous fiscal.
In the five months of FY2021, the government repaid interest worth $206.07 million and principal worth $540.63 million against the outstanding external debt.
"Since our borrowing has increased over the years, debt servicing is also increasing," said the senior ERD official.
"The government has taken a huge amount of buyers' credit and short-term loans over the last few years. Grace period of most of the loans was 5-6 years. So, the government has to start their debt servicing in recent years," the official said, requesting anonymity.
Source: The Financial Express Bangladesh
Bangladesh’s cotton import growth signifies that the apparel sector is growing. The local cotton import raised by about 9% to 75 lakh bales in the 2019-20 marketing year (MY) – the cotton marketing year begins in August and ends in July and one bale equals to 480 pounds – in spite of the ongoing COVID-19 pandemic, said a data from the United States Department of Agriculture (USDA).
US cotton exports to Bangladesh in MY2019-20 reached 1.06 lakh bales, up 28.9% from MY2018-19. The US cotton market share was approximately 14% in MY2019-20, which is second to India’s 23% market share.
USDA report also said, for MY2020-21, cotton imports will marginally decline to 71 lakh bales amid the insecurity in global demand and comparatively low import in the first months of the year.
Monsoor Ahmed, Secretary to the Bangladesh Textile Mills Association (BTMA) said, “Cotton imports continued even amid the ongoing crisis since many consignments were signed earlier but imported later.”
Sales in the textile backward sector disturbed during the COVID-19 outbreak in April-May but when the markets reopened, the sales started to grow again.
This was specially the case for the weavers and spinners that serve local markets, Monsoor Ahmed added.
The ongoing pandemic has disrupted Bangladesh’s textile and apparel industry, resulting in a sharp decline in the sector’s exports to major markets, including the US and EU. Preliminary data from the Bangladesh Export Promotion Bureau shows that the export value of apparel in the first 10 months of 2020 dropped 19 per cent year-on-year to $22.4 billion.
Though, this decay was lesser than the prediction made by the industry experts in May 2020 as Bangladesh’s achievement in combating COVID-19 has permitted factories to continue operations despite a few short-term disruptions.
Source: Textile Today
Foreign Minister Dr AK Abdul Momen on Tuesday said Bangladesh, with its 165 million hard-working people in between two large economies like China and India, is a lucrative destination for investment.
He said the government wants to accelerate the mammoth task with greater depths in external trading, coupled with a larger inflow of foreign investment and remittance as economic growth and prosperity remain foremost priority.
"Keeping the economy stable, and a reduction in poverty level, creating more jobs and economic growth and prosperity remain our foremost priority," said the Foreign Minister while addressing the opening ceremony of the 'DCCI Business Conclave-2020'.
Dr Momen said the steady growth trajectory needs to be taken to another height to graduate to be a developing country by 2024 and a developed nation by 2041, according to a UNB report.
"A sustained GDP growth of 8.0 per cent would enable us to fulfil the dream of the Father of the Nation to build the 'Golden Bengal'-'Sonar Bangla'. We're confident that the vision of Prime Minister Sheikh Hasina emphasising Economic Diplomacy and its implementation by all ministries and authorities concerned of the government will help realise this dream," he said.
Dr Momen said they have introduced Economic Diplomacy and under this package during the next few years, they expect to gain an equitable market access; expansion of export basket; significant amount of inward FDI inflow; transfer of critical technologies and greater and better employment of our professionals and workers both home and abroad.
"To provide quality service, we would like to be a global manufacturing hub," he said.
But to achieve the goals of 'economic diplomacy' in addition to professional diplomats working in the Ministry of Foreign Affairs & Bangladesh missions abroad, he said they encourage business leaders, political and economic stakeholders, NGOs and even individuals to work in partnership and collaboration. "We encourage our business leaders to come up with innovative ideas and strategies."
Dr Momen said accelerating growth; reducing poverty and income inequality and establishing regional and sub-regional connectivity - from the Indian oceans across the Himalayan ranges - are the overarching goals of the current development paradigm in Bangladesh.
He said the main strategy for achieving these goals include creation of productive employment in the manufacturing and organised service sector and increasing connectivity.
"We believe connectivity is productivity. We're also planning to augment our skill sets to SME-level configurations in the short run and accessing skills and expertise markets in the medium-term future. We want to use the existing market forces and to leverage our potentials by using digital technologies."
He said they have established a new wing to deal and coordinate with all trade and investment issues with all relevant national authorities and ministries, including BIDA, BEZA, BEPZA and High-Tech Park Authority and to closely work with them as "One-Government".
"We're also planning to host a virtual business and investment platform connected to all our 78 missions. We would be happy to share our findings in the conversations that we may expect to have," Dr Momen said.
He said Bangladesh is well poised to become the 25th largest economy in the world by the year 2035.
"We've huge potential to become an international hub for business and manufacturing hub and we would like to become global incubators for innovation and entrepreneurship," Dr Momen said.
He said Bangladesh is a "development miracle" in terms of sustainable GDP growth and socio-economic parameters achieved under the dynamic leadership of Prime Minister Sheikh Hasina. "From a bottomless basket it has become a "Vibrant economy, a land of opportunity."
Even under Covid pandemic Bangladesh achieved 5.24 per cent GDP growth rate, which is the highest in Asia, Dr Momen said.
This has been possible for the pro-business and incentive-rich initiatives and measures and relentless efforts being made by the government while creating social safety nets to allow individuals on the fringe for securing a stable income and other livelihood supports, he said.
Dhaka Chamber of Commerce & Industry (DCCI) organised a three-day international business conclave.
Executive Chairman of Bangladesh Investment Development Authority (BIDA) Md Sirazul Islam joined it as a special guest.
DCCI President Rizwan Rahman, Director and immediate past President Shams Mahmud, DCCI Senior Vice President N K A Mobin also spoke at the event.
Source: The Financial Express Bangladesh
