The government and the private sector have urged Indian investors to invest in Nepal. Addressing a programme to welcome officials and industrialists of Utkal Chamber of Commerce and Industries who came to visit Nepal from Odisha, India, Industry, Commerce and Supply Minister Dilendra Prasad Badu said that the government has made legal and procedural reforms to facilitate investment in Nepal. Minister Badu informed that the minimum threshold for foreign direct investment has been reduced from Rs 50 million to Rs 20 million, adding that the government has adopted one-door policy. Stating that the private sector of Nepal has played a pivotal role for the economic development of the country, he urged Indian investors to invest here. Citing the example of Dabur Nepal, Unilever Nepal and other companies that have invested in Nepal and generated huge profits, President of Confederation of Nepalese Industries (CNI) Bishnu Agarwal urged Indian investors to invest in Nepal. "There are huge investment potentials in cement, mining, hydropower, and information technology," he said. "Also, the possibilities of high returns are massive here as 77 Nepali products have been provided customs and quota free facilities by the United States." Chandra Prasad Dhakal, senior vice-president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), requested the Indian investors to invest confidently in Nepal as the both countries share similar political, social, cultural and economic relationships. Highlighting the special bond in social, cultural and economic aspects between Nepal and India, President of Nepal Chamber of Commerce Rajendra Malla and President of Federation of Nepal Cottage and Small Industries Umesh Prasad Singh informed about the suitable environment for investment in tourism and infrastructure sectors. President of Utkal Chamber of Commerce and Industry Brahma Mishra said that Nepal is a suitable destination country for investment. He further said the confidence of the Indian investors has been boosted by the welcoming gesture of the Nepal government and the private sector. Meanwhile, the event saw business-to-business (B2B) discussions between Indian and domestic investors in the fields of energy, mining and real estate, steel, textiles, agriculture, food and packaging, services and tourism, education, health, and information technology.
Source: The Himalayan Times
Ease of Doing Business for MSMEs: The new textile policy of Karnataka added 64,000 new jobs in the last three years. Ease of Doing Business for MSMEs:The garment policy of Karnataka helped 544 medium and small units manage its operations with an investment of Rs 745 crore and and provide provide training and employment to 64,000 people over the past three years, the state’s Handloom and Textiles minister,Shankar Patil Munenakoppa said on Thursday. The policy launched in 2019 will be in force for two more years, reported the Times of India. Investments worth Rs 1,060 crore in mega projects created 17,300 jobs , Munenakoppa said in the event organised by the department of handloom and textiles. He also added that the garment policy 2019-24 aimed at attracting investment of up to Rs 10,000 crore and adding about 5 lakh jobs. The minister was interacting with more than 100 textile industrialists at the event. Karnataka is the second largest textile employer in the country that employs around six lakh people in the state. The Department of Handlooms and Textiles runs144 skilled development Centers and 168 Private Training Centres across the state. The New Textile Policy was announced with the ambitious investment outlay of Rs 10,000 crore and generate employment to 5,00,000 people during the policy period i.e. 2019 to 2024.
Source: Financial Express
The principal bench of the GST Appellate Tribunal (GSTAT) is proposed to be set up in New Delhi, while large states can have up to five benches, they said. It also suggested relaxation in criteria for appointment of members. A group of ministers (GoM) set up by the Goods and Services Tax (GST) Council has cleared the framework for setting up appellate tribunals to hear disputes, proposing more than one bench in a state, said people with knowledge of the matter. The principal bench of the GST Appellate Tribunal (GSTAT) is proposed to be set up in New Delhi, while large states can have up to five benches, they said. It also suggested relaxation in criteria for appointment of members. The GoM, headed by Haryana deputy chief minister Dushyant Chautala, is likely to submit its report to the GST Council next week, said the people cited. A final call on recommendations will be taken by the council when it meets in September. Once the GoM's recommendations are accepted by the council, appellate bodies can be set up in states and UTs, they added. Pending Demand The industry has repeatedly raised the need for GSTATs, flagging the urgency to expedite disposal of cases. In the absence of these tribunals, GST disputes were going straight to the high courts after adjudication by officials, creating delays and dragging out disputes. "Since five years have been completed, and several interpretational issues have cropped up, it is essential that GST tribunals begin functioning soon with an adequate number of benches," said MS Mani, partner, Deloitte India. "This may necessitate a review of the criteria to be adopted for selecting members, composition of the benches etc, all of which should be completed soon, so the benches are made functional." EY partner, tax, Saurabh Agarwal said, "Taxpayers are forced to either keep the dispute in abeyance due to non-formation of a tribunal, or to approach the state high court." The GoM has agreed with states on relaxing the experience criterion for appointment of technical members. It had been pegged at 25 years in a draft circulated by the GST Council. Now, each state will set its criterion. It has also allowed states to have more than one bench, based on population, or number of registered and active GST users. Recommendations The six-member GoM includes Odisha finance minister Niranjan Pujari, Andhra Pradesh finance minister Buggana Rajendranath, Goa industries minister Mauvin Godinho, Rajasthan law and legal affairs minister Shanti Kumar Dhariwal and Uttar Pradesh finance minister Suresh Khanna. The GoM met on Wednesday in Bhubaneswar to review the proposed framework. It recommended an amendment to Section 110 of the Act, replacing the word 'government' with 'state government.' This will allow state governments to relax the experience condition. The existing provision allowed only the Centre to provide relaxations or exemptions in the appointment of members. The GST Council had proposed that each regional bench consist of a judicial officer equivalent to a high court judge, and a senior tax officer from either the Centre or state as a technical member. The appellate body will be headed by former Supreme Court judges or high court chief justices. The GoM also recommended that a four-member search and selection committee be set up for the appointment of members to the benches. The selection committee will be headed by either the Chief Justice of India or his representative judge from the top court, along with the president of the GSTAT, a Union government secretary and a state chief secretary.
Source: Economic Times
Exemptions specified in Free Trade Agreement with regard to country of origin on imported goods will prevail in case of conflict between revenue department and importer, the finance ministry has said Exemptions specified in Free Trade Agreement (FTA) with regard to country of origin will prevail in case of conflict between revenue department and importer, the finance ministry has said. In an instruction to chief commissioners, the Central Board of Indirect Taxes and Customs (CBIC) said the customs field officers should be sensitive to applying CAROTAR and maintain consistency with the provisions of relevant trade agreement or its Rules of Origin. Customs(Administration of Rules of Origin under Trade Agreements) or CAROTAR Rules, came into effect from September 21, 2020. It empowers the customs officers to ask the importer to furnish further information, consistent with the trade agreement, in case the officer has reasons to believe that the country-of-origin criteria have not been met. Where the importer fails to provide the requisite information, the officer can make further verification consistent with the trade agreement. "In the event of a conflict between a provision of these rules and a provision of the Rules of Origin, the provision of the Rules of Origin shall prevail to the extent of the conflict," the CAROTAR rules said. In the instruction issued on August 17, the CBIC wrote to the chief commissioners saying: "The officers under your charge should be sensitive to applying CAROTAR maintaining consistency with the provisions of relevant trade agreement or its Rules of Origin." India has inked FTAs with several countries, including UAE, Mauritius, Japan, South Korea, Singapore, and ASEAN members. Under FTA, the trading partners agree to significantly reduce or eliminate import/customs duties on the maximum number of goods traded between them, besides relaxing norms to promote trade in services and investments. The 'rules of origin' provision prescribes for minimal processing that should happen in the FTA country so that the final manufactured product may be called originating goods in that country. Under this provision, a country that has inked an FTA with India cannot dump goods from some third country in the Indian market by just putting a label on it. It has to undertake a prescribed value addition in that product to export to India. Rules of origin norms help contain dumping of goods. KPMG in India, Partner Indirect Tax, Abhishek Jain said the CAROTAR regulations require the companies availing benefit under FTAs to maintain and furnish information in Form I which essentially puts some onus on the importer to ensure that the benefit is taken in line with the rules stipulated under the relevant FTAs. "In order to avoid any unnecessary harassment, the circular reiterates that the information to be asked by customs officer should be consistent with the provisions of trade agreements/FTAs and should not go beyond it under the garb of CAROTAR provisions," Jain said. EY India Tax Partner Saurabh Agarwal said this instruction allays importers' concerns to a larger extent, wherever FTA-based exemptions are being availed. "Currently, the CAROTAR rules require extensive submission of data and facts, where in certain cases the requirement even goes beyond the stipulated conditions under the bilateral/multilateral FTAs signed between the countries. This clarification affirms our long-standing position that provisions of FTAs shall prevail over the CAROTAR rules wherever any conflict arises," Agarwal added.
Source: Business Standard
Synopsis Centro Credit Bank, Bank Soyuz and MTC Bank are also said to be part of the group of Russian lenders that are not under global economic sanctions and are negotiating with their local counterparts, such as the State Bank of India, IndusInd Bank, Bank of Baroda and Yes Bank. More than 15 Russian banks are in advanced talks with Indian lenders to facilitate bilateral business in their respective local currencies, bypassing the established trade mechanism tied to the US dollar, and are working on building a bespoke reference exchange-rate framework between the rupee and the rouble, people familiar with the matter told ET. Petersburg Social Commercial Bank, Zenit Bank and Tatsotsbank are among the Russian lenders likely to open these customised trade accounts. , NSE -2.56 % and NSE -0.87 % are likely to be the local partners of the lenders from Moscow. Indian Banks’ Association (IBA) is reportedly engaged in facilitating the talks. The Indian Economic Trade Organization (IETO) is coordinating with local companies that are keen on trade with Russia. Banks and the respective regulators are considering setting up a customized common reference exchange rate that will be announced daily by both the Reserve Bank of India (RBI) and the Central Bank of Russia. By contrast, in the ordinary course of global trade, the prevailing rate of a currency in relation to the US dollar is typically the peg used to derive the exchange rate with a third monetary unit.
Centro Credit Bank, Bank Soyuz and MTC Bank are also said to be part of the group of Russian lenders that are not under global economic sanctions and are negotiating with their local counterparts, such as the NSE -1.20 % , NSE -1.38 % , NSE -1.16 % and NSE -1.21 % . Officials at the RBI could not be immediately reached for their comments. Individual banks could not be contacted immediately for comments. IBA and Indian lenders did not respond to ET’s queries. "A host of Russian lenders are in talks with select Indian banks as they are going through several permutations and combinations," said Asif Iqbal, president, Indian Economic Trade Organization. "While the rupee-denominated trade with Russia will pave the way for cheaper oil imports, small to mid-sized public sector banks will look at this as an opportunity to expand their operations to territories where they were never present." With a strong dollar-denominated balance sheet, the NSE -1.20 % may not be able to participate in these bilateral trades bypassing Western sanctions, sources said. Unlike small local lenders that have minimum exposure to dollar assets, SBI would not like to risk its sizable presence in the US and Europe’s richer neighborhoods by entering into trade deals that bypass the world’s reserve currency. The RBI, on July 11, allowed invoicing and payments for international trade in rupees, potentially facilitating greater bilateral business with Russia that is facing a wide range of Western sanctions and is virtually cut off from standard cross-border payment platforms. The move paved the way for settlement of payments in rupees for trades between Indian and Russia by giving greater flexibility in the operation of vostro accounts that Russian banks open with Indian banks for the purpose. A vostro account is one a foreign bank opens with an NSE -1.88 % in domestic currency i.e. rupees.
India imported goods worth $4.23 billion in June from sanctions-hit Russia, up nearly seven times compared with last year. Crude oil worth $3.02 billion was reportedly imported in June, which translates into a share of 71% of the total imports from Russia.
Source: Economic Times
The unusual delay in the ratification of the Economic Co-operation and Trade Agreement (ECTA) by Australia has rattled the IT industry, apart from adding to uncertainties about bilateral trade prospects. The deal is aimed at raising bilateral trade to $50 billion in five years from $27.5 billion in 2021. Australia will likely ratify before November 18 an interim trade deal with India, which was signed on April 2 but is yet to come into force due to a delay in endorsement by its Parliament following the election of a new labour govenrment there, sources told FE. The unusual delay in the ratification of the Economic Co-operation and Trade Agreement (ECTA) by Australia has rattled the IT industry, apart from adding to uncertainties about bilateral trade prospects. The deal is aimed at raising bilateral trade to $50 billion in five years from $27.5 billion in 2021. The IT industry wants Australia to stop taxing the offshore income of Indian firms providing technical support there at the earliest. Canberra is to tweak its domestic law to stop such a taxation, a pledge that is part of the India Australia ECTA. Moreover, benefits of the trade deal would accrue only after it’s ratified. Some of the senior Indian industry executives now want the negotiation for a broader free trade agreement (FTA) with Australia, which was agreed upon earlier, to start only when the interim deal comes into force. The ECTA promises preferential access to all Indian goods in five years (from 96.4% immediately after the pact comes into effect) and 85% of Australian products (from 70% to start with) to each other’s market. Indian yoga instructors, chefs, students and STEM (Science, Technology, Engineering and Mathematics) graduates will have easier access to Australia while premium wine from that country will make greater inroads into Indian supermarkets once the deal comes into force. Indian labour-intensive sectors — including gems & jewellery, textiles & garments, leather, footwear, furniture and food & farm products — and engineering products, medical devices and automobiles will benefit from the pact. Similarly, Australia will have preferential access to the Indian market in raw materials such as coal, aluminium and premium wines. Indian IT industry executives said once the deal comes into effect, it will correct a costly anomaly in the 1991 double taxation avoidance treaty (DTAA) between the two countries and enable Indian IT and ITeS players to substantially scale up their operations in Australia. The anomaly is expected to have cost Indian IT companies about $1.3 billion since 2012, according to an industry estimate. Using the provisions of the India-Australia DTAA, Canberra has been taxing income generated from offshore IT services rendered from India as royalty, even when the same income is being taxed in India as well.
Source: Financial Express
In the fiscal year 2021-22, the US was India's largest trade partner, followed by China India should focus on mass production of commodities in which it has a comparative advantage over its top-two trading partners — the US and China — the PHD Chamber of Commerce and Industry (PHDCCI) said in a report. According to the industry body, India has a lot of potential to export pharmaceuticals, electrical machinery and equipment, nuclear reactors and boilers and plastic items to the two countries during the pandemic. “As a result, the US and China should import most of these commodities from India rather than other countries.It would necessitate more support and guidance from the government, focusing on lowering the cost of doing business in the country. These costs are capital costs, compliance costs, logistics costs, land costs and availability as well as labour costs,” the report said. In the fiscal year 2021-22, the US was India’s largest trade partner, followed by China. The US was also India’s largest export market during the last fiscal, while China was India’s largest import destination. India can increase its exports to the US in sectors such as nuclear reactors and broilers, electrical machinery, vehicles and components of iron and steel, the report said. “India is exporting less than a per cent of the US’s total imports of these products while China, Mexico and Canada are the major exporters to the US. On the other hand, India can tap into exports of cereals, electrical machinery and pharmaceutical products to China,” it said. The share of India’s top-10 exporting products to the US and China’s importing basket are not very significant. So, India should take necessary steps such as product-specific trade agreements to improve its export potential in these countries, the report said. It further suggested that India holds the potential to reduce 40 per cent imports, worth around $35 billion, from China. India has significant scope for producing more import substitutes in sectors like chemicals, automotive components, bicycle parts and agro-based items. The items also include handicrafts, drug formulations, cosmetics, consumer electronics, and leatherbased goods, among others, said industry association's President Pradeep Multani. Enhanced production in these sectors will not only reduce imports from China but also boost India’s exports, said Multani.
Source: Business Standard
To augment skill training in tribal communities for their inclusive and sustainable growth, National Skill Development Corporation (NSDC) in partnership with Seva Bharti and Yuva Vikas Society, today launched the second phase of Grameen Udyami Project, today. Under the initiative, the endeavour is to multiskill India’s youth and impart functional skills to them for enabling livelihoods. Prime Minister, Shri Narendra Modi has emphasised on the involvement of tribal communities in the workforce, ensuring their holistic development to make them self-reliant and contained within their respective geographies. Shri Arjun Munda, Union Minister of Tribal affairs launched the programme, Shri Rajeev Chandrasekhar, Minister of State (MoS) for Skill Development & Entrepreneurship; and Electronics & IT, virtually addressed the august gathering and Shri Bishweswar Tudu, MoS, Tribal Affairs and Jal Shakti inspired the audience with his encouraging words. The event witnessed the presence of key dignitaries, Shri V. Satish, Mahamantri, Rashtriya Seh Sangathan, Shri Samir Oraon, Rashtriya adyaksh, Ansuchit Janjati Morcha evam Rajya Sabha Sansad and Shri Shivshankar Oraon, MLA, Gumla, Jharkhand. Grameen Udyami is a unique multiskilling project, funded by NSDC that aims to train 450 tribal students in Madhya Pradesh and Jharkhand. The project is being implemented in six states— Maharashtra, Rajasthan, Chhattisgarh, Madhya Pradesh, Jharkhand, and Gujarat. This concept was crystallized by MoS, Shri. Rajeev Chandrasekhar and tribal MPs. Speaking on the occasion, Shri Arjun Munda stated that our complete focus is on strengthening sustainable livelihood for tribal populations and with this, the central government has sanctioned a budget of 85,000 cr. exclusively for tribal areas. There is also a dire need of increasing ownership so that there is awareness built around such schemes and initiatives. There is so much potential and ability in the tribal youth that all we need to do is lay down the right avenues for them to use their talent in the right places. He expressed that Grameen Udyami project will prove to be game changer for the tribal communities of Jharkhand and will extend the right opportunities to them to stand on their own feet. He urged gram panchayats, villages, and blocks to bring these initiatives to youth for their progress. Shri Rajeev Chandrasekhar said that we recently celebrated Azadi ka Amrit Mahotsav to honour India’s rich past and committed ourselves to Amrit Kaal, a vision for New India for the twenty five years. This New India will bring new opportunities and better prospects for India’s youth. We all witnessed the challenges posed by COVID-19 but also experienced India’s win over this grave situation and our efforts got recognised, globally. Our Prime Minister, Shri Narendra Modi has emphasised that the route to Atmanirbhar Bharat will be through Atmanirbhar villages, Atmanirbhar towns and Atmanirbhar districts. Therefore, our tribal communities take precedence in our efforts to propel India’s economic growth, he added. He hoped that the success that Grameen Udyami project has achieved in Madhya Pradesh, it will receive the same response in Jharkhand since skilling is the passport to prosperity of any region. Shri Bishweswar Tudu expressed that a nation can develop if cities develop and cities will develop, if we invest in the development of villages. And a key component of this is to provide quality education to our tribal communities so that several prospects open-up for their growth. Prime Minister, Shri Narendra Modi has also focused on the inclusivity, financial growth of our tribal areas and certainly, Grameen Udyami project will provide economic empowerment to our tribal population. Umpteen number of schemes and pilot projects have also been initiated for accelerating the economic engine of India, he added. In the first phase of training, candidates were mobilized from rural and tribal areas of Maharashtra, Rajasthan, Chhattisgarh, Madhya Pradesh, and Gujarat. Since candidates were mobilized from the rural areas, transportation, boarding & lodging was provided to candidates so that they do not miss out the learning opportunity due to lack of resources. In Bhopal, Madhya Pradesh, training of 157 candidates started in seven batches in the month of May,2022 and approximately 133 candidates completed the training successfully on June 27th, 2022. The phase-II of the pilot project launched in Ranchi today is being implemented by Yuva Vikas Society, through Seva Bharti Kendra in Ranchi. NSDC under the aegis of MSDE has supported in setting up of labs and classrooms through Sector Skill Councils (SSCs) in Seva Bharti Kendra Skill Development Center. The training under the project will be conducted in the following Job roles which are relevant to the local economy. ▪ Electrician & Solar PV Installation Technician ▪ Plumbing & Masonry ▪ 2-Wheeler Repair & Maintenance ▪ IT/ITES with e-Governance ▪ Farm Mechanization Grameen Udyami Yojana is implemented under Sansadiya Parisankul Yojana. A twoday conference of Honorable MPs was held in Mumbai to discuss the upliftment of tribal communities in January 2020 in which various experts and government organizations shared their experiences. Further, Scheduled Tribe organizations called for a 'Parliamentary ST Cluster Development Project' which has been initiated. Under which, 49 clusters in 15 states of India have been selected by 40 tribal MPs of Lok Sabha and Rajya Sabha. Under their leadership, the scheme in respective clusters will be implemented. One development associate is appointed by the MPs in each cluster. Following objectives must be achieved under the project: ▪ Increase in Rural/Local Economy ▪ Enhance employment opportunities ▪ Reduce forced migration due to lack of local opportunities ▪ Conservation of natural resources Due to lack of skill and education, organized sectors have very poor contribution in tribal livelihood as compared to the national average. Therefore, initiatives like Grameen Udyami project are critical for their betterment and to ensure their livelihood generation.
Source: PIB
The country's foreign exchange reserves fell $2.238 billion to $570.74 billion in the week ended August 12, according to the Reserve Bank of India (RBI) data The country's foreign exchange reserves fell USD 2.238 billion to USD 570.74 billion in the week ended August 12, according to the Reserve Bank of India (RBI) data. In the previous week ended August 5, the foreign exchange reserves declined USD 897 million to USD 572.978 billion. The fall in the reserves in the reporting week ended August 12 was on account a decline in the Foreign Currency Assets (FCA), a major component of the overall reserves, according to the Weekly Statistical Supplement released by RBI on Friday. FCA declined USD 2.652 billion to USD 506.994 billion, the data showed. Expressed in dollar terms, FCA includes the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. Gold reserves surged USD 305 million to USD 40.618 billion. The Special Drawing Rights (SDRs) increased USD 102 million to USD 18.133 billion. The country's reserve position with IMF also rose by USD 7 million to USD 4.994 billion in the reporting week, as per the data.
Source: Business Standard
President Abdel Fatah al-Sisi received Sunday at Alamain Airport UAE President Mohamed Bin Zayed to exchange views on international issues, regional security, and the current circumstances of the Arab World. The two leaders agreed to reinforce Arab joint work and unity in the face of challenges experienced by the Arab region. That is with the aim of crystallizing permanent solutions to regional crises, which would strengthen the pillars of security, stability, and peace. Sisi and Bin Zayed equally conferred over bilateral cooperation, and the promising opportunities of partnerships in the economic and developmental realms. Zayed's visit comes within the mini Arab summit Egypt is hosting Monday, and that will have the chiefs of state of the UAE, Iraq, Jordan, and Qatar. The Permanent Mission of the UAE to the United Nations had urged Egypt, Ethiopia and Sudan to continue negotiating on the issue of the Renaissance Dam in "good faith" under the brokerage of the African Union (AU). “The United Arab of Emirates (UAE) believes that a successful conclusion of negotiations on the GERD is within reach, and recognizes the great opportunity it presents to enhance and accelerate regional integration, while bolstering cooperation and sustainable development in the region and beyond, in the spirit of African solution to African challenges,” the mission said in a statement on August 2, 2022. The ministers of trade and industry of Egypt, United Arab Emirates, Bahrain, Jordan, and Bahrain agreed in July on 12 “top priority” projects out of 26 within the framework of the industrial partnership initiative bringing the four countries together. Those are in the sectors of agriculture, pharmaceuticals, textiles, minerals and petrochemicals. Late in May, Egypt, Jordan and the UAE signed the “Industrial Partnership for Sustainable Economic Development,” as per which the Abu Dhabi Developmental Holding Company PJSC (ADQ) will allocate an investment fund of $10 billion.
Source: Zarish Sajid
Mastercard’s COO for South Asia says Bangladesh's payment ecosystem is poised to leapfrog to become a very large substantial payment market within the South Asia and Asia Pacific region in the next few years, said Vikas Varma, chief operating officer for South Asia at Mastercard. "The signs of economic growth and prosperity, especially in urban areas, are very visible. I can see a lot of organisation and presence of a lot of new spending power in the country now." The youths have always been very vibrant in Bangladesh, he said. Emergence of large infrastructure, rising public spending and a stable government for over the last 10 years have led to a continuum of very strong economic and social policies, which allowed the economy to take a giant stride in terms of development, he said. In the payment industry, where Mastercard operates in, the effects are no less dramatic, Varma told The Daily Star in an interview recently. Global trends are changing the way people pay and get paid and some are naturally impacting Bangladesh in good ways. With smartphones and data, all people are getting connected and getting closer to others in many ways. He said Mastercard has been here in Bangladesh for over 31 years and the country office was established 9 years ago with local staff. "We have started with a few thousand cards and now we have millions." Over the years, Mastercard has introduced a wide variety of payment tools, including debit, credit, prepaid, SME, dual currency and single currency cards, he said. "What I am also seeing is very dramatic and very large opportunity for future growth." He said the global trends are changing the way people pay and get paid and some are naturally impacting Bangladesh in good ways. With smartphones and data, all people are getting connected and getting closer to others in many ways. Smartphone and data penetration are also very high in Bangladesh and the quality of telecom infrastructure also seemed good, he added. "The benefits of connectivity, from Bangladesh as well as the outside world, is very dramatic. It leads to a real time exchange of information, data, payment movement and commerce as well, said Varma, who is responsible for managing business development for the South Asia division. At the same time, consumers, as their lifestyles evolve, need to find more safe and convenient ways to pay, he said. The consumers should have the confidence on future payment solutions, he said. "Innovation and finding a balance between safety, security and convenience is very critical for us." He thinks consumers want to feel safe and they must be educated about how they will feel safe and how they can do online payments. They must be educated about taking care of some dos and don'ts like not sharing password, not letting mobile phone move far from reach and not handing over cards to random folks. Risks to the ecosystem are also increasing every day, he said. The good guys are advancing, but the bad guys are not far behind as there are hackers and people who are targeting phones with malware, he added. Therefore, a lot of work has to be done by the ecosystem players like banks to ensure that security of the entire transaction ecosystem is ensured, Varma said. With time, innovations will present new use cases and payment methods, but it will also need focused efforts on cyber security and knowledge for customers about how to use the tools more safely. Mastercard does not normally share its country-level market data. The company is doing business here in Bangladesh for longer than other networks, especially with physical capacity, and Mastercard has built very strong relation with financial institutions, banks and regulators, he said. Varma said he thinks Mastercard is very well placed as a network to become a dominant market player. He said Mastercard would focus mainly on the growth of debit and prepaid segments as the country has over 110 million adult population and not all are banked yet. Driving financial inclusion along with regulators and other influencers in the government will help the company gain more debit and prepaid clients, he added. According to him, another focus sector for Mastercard would be the SME sector -- the backbone of the Bangladesh economy where 25 per cent of its gross domestic product come from. "In general, SMEs are least served from a financial solution capability standpoint. So, the SMEs need more attention." There are some areas where banks can help SMEs run their business more efficiently and get capital and payments easily, he said. E-commerce is another sector, which needs more focus, some progressive policy and investment from ecosystem players, he said. He said Bangladesh has a lot of room for growth since only 10 per cent of the eligible population currently own a card, whereas one person has at least one card in most of the other nations.
Source: The Daily Star
Simultaneously, the revenue board will lift the ban on importing Nepalese non-acrylic yarns Bangladesh is going to allow yarn import through four more land ports – Bhomra of Satkhira, Sonamasjid of Chapainawabganj, Darshana of Chuadanga, and Banglabandha of Panchagarh – in a bid to facilitate the essential apparel raw material trade as well as boost the ports' activities. Currently, Bangladesh imports yarn through the Benapole land port only from neighbouring India. The National Board of Revenue has taken the decision at a recent meeting headed by its Chairman Abu Hena Md Rahmatul Muneem. Of the four ports, Banglabandha will be allowed especially to import yarn from Nepal following repeated requests from the landlocked country, according to the meeting minutes, a copy of which The Business Standard has obtained. "Apart from Benapole, yarn imports through Bhomra, Sonamasjid, and Darshana land ports will be allowed for yarn import," it reads. "However, the three ports will not be useful to import yarn from Nepal. Considering that, traders will be allowed to import Nepalese yarn using the Kakarvitta-PanitankiPhulbari-Banglabandha route," it adds. Earlier, the Ministry of Foreign Affairs wrote to the revenue board for allowing nonacrylic Nepalese yarn import, arguing that it would help further strengthen bilateral relations between the two neighbouring countries. It said Nepal has the capacity of exporting a small amount of non-acrylic yarns, but keeping a ban on the trade hurts the relationship with the neighbour. Earlier in late 2018, the NBR allowed the import of only acrylic yarn from Nepal through the Banglabandha land port by withdrawing a ban imposed in 2002. Meanwhile, talking to The Business Standard, local spinners criticised the government move, saying that it might affect the local yarn-manufacturing industry. "As per we know Nepal has no spinning mills. Then, how do they export yarn?" Bangladesh Textile Mills Association Director Md Saleudh Zaman Khan asked. "Already local spinners have a stockpile of yarns worth over $2 billion. Moreover, yarn imports through the port would not be cost-effective," he, also managing director of NZ Group, added. Mentioning that there is no testing facility to measure yarn quality at the Banglabandha port, he feared that the facility of importing yarn through the port might be abused by third-country exporters. However, the foreign ministry in its letter argued that Nepal is not capable of exporting so much yarn that can have a negative impact on Bangladesh's yarn-makers. Moreover, the move will diversify yarn sources. When contacted, Bangladesh Knitwear Manufacturers and Exporters Executive President Mohammad Hatem appreciated the government move of allowing yarn import through Banglabandha land port. Besides, the opportunity of importing Indian yarn through other land ports will reduce dependency on the Benapole land port, he added.
Source: TBS News
A freight train from southwest China’s Chongqing municipality recently arrived at Qinzhou Port East Station in the Guangxi Zhuang autonomous region in the south. Loaded with goods like chemicals, food items and auto parts from regions along the land-sea freight route—part of the new International Land-Sea Trade Corridor, cargo from the train X9575 will be shipped to Association of Southeast Asian Nations (ASEAN) member states at the port. Instead of about a month of transit for commodities from western regions to reach ASEAN member states via the Yangtze River and sea route, cargo consigned in Chongqing can now be delivered to Vietnam through the corridor in just four days, said Liang Yu, deputy head of the station. The International Land-Sea Trade Corridor was launched in 2017, and is a trade and logistics passage jointly built by western Chinese provinces and ASEAN member states. Chongqing is its transportation hub, and the corridor uses ports in Guangxi's Beibu Gulf to reach ports in Singapore and other ASEAN member states. It links China-Europe freight trains setting off from many western Chinese cities before heading to Central Asia, South Asia and Europe. The corridor saw 379,000 twenty-foot equivalent unit (TEU) containers transported by the railway's intermodal freight trains in the first six months this year, up by 33.4 per cent year on year, according to the China Railway Nanning Group Co. Ltd, official Chinese media reported. The corridor, covering 14 provincial-level regions in China, has expanded its reach to 319 ports in 107 countries and regions. Over the past five years, the trade volume between the regions and cities along the corridor in China with ASEAN has continued to rise, up from $58.9 billion in 2017 to $107.7 billion in 2021, official data showed.
Source: Fibre 2 Fashion
The UK government has released a few more details on the proposed revamp of its Generalised Scheme of Preferences (GSP), due to be rolled out in early 2023, which observers say suggest that the new regime could be more favourable for Cambodian garment and textile-related commodities, especially travel goods. However, the Garment Manufacturers Association in Cambodia (GMAC), the apex garment makers’ body, highlighted in a letter at the weekend that the Developing Countries Trading Scheme (DCTS) would offer no significant changes in preferences for Cambodia, although acknowledging that the scheme would be “a bit more liberal for travel goods”. “Travel goods” is a designation that includes suitcases, backpacks, handbags, wallets and similar items. The letter pointed out that London would retain the same three-tiered system as the previous scheme – General Framework, Enhanced Framework, and LDC (least developed country) Framework – which it noted is based on the EU’s General, GSP+, and EBA (Everything But Arms) tiers. The tiers of preferences within the DCTS will be renamed to Standard Preferences, Enhanced Preferences, and Comprehensive Preferences, the last of which is specifically designed for LDCs, it added. “There will still be duty-free, quota-free access for everything but arms for Cambodia, and all LDCs, under the Comprehensive tier,” GMAC said. “However, a few more products have been made duty-free under the Enhanced tier. That means that around 85 per cent of UK tariff lines are now duty-free under the Enhanced tier while around 80 per cent have reduced duties under the Standard tier. Travel goods are duty-free under all tiers, but apparel is duty-free only under the Enhanced and Comprehensive tiers,” it added. Speaking to The Post, Cambodia Travel Goods and Leather Association (CTLA) chairman Lim Tong hailed the latest details of the UK’s DCTS as “good news for the travel goods sector in Cambodia that comes as orders start to fall significantly amid a slowdown in the global economy”. Nonetheless, he voiced concern that the dry-up in orders coupled with global instability and economic downturn are hurting key exports of Cambodian garment items. Cambodia Chamber of Commerce vice-president Lim Heng said that the new trading scheme would not only be able to offset some of the losses from the EU’s partial withdrawal of its EBA scheme, which affects 20 per cent of Cambodia’s exports to the bloc, but also help boost the volume of Cambodian goods available across EU nations. “The preferential system will encourage more products to be exported to the UK or to the EU via the UK, which is a sublime opportunity for investors in garments, textiles, bags, bicycles, electrical equipment and solar products,” he said. However, Ky Sereyvath, economics researcher at the Royal Academy of Cambodia (RAC), claimed that the UK’s more liberal DCTS means that Cambodia would be able to buy raw materials from countries with perceived shortcomings in upholding human rights. Under the earlier GSP, turning out semi-finished and finished goods from raw materials purchased from such nations “may be a problem with the British refusing to buy the products”, he said. “But this preferential system does not have the same human rights conditions as before.” According to the GMAC letter: “The criteria for [the Enhanced tier] is now a simple economic vulnerability criterion as opposed to the human rights criteria in the EU GSP+ scheme. That means almost all non-LDCs are now part of the Enhanced tier – and thus have duty-free access for all apparel and travel goods.”
Source: Phnom Penh Post
Denmark will scout to Vietnam to explore business and investment opportunities. A delegation of Danish companies will accompany Crown Prince Frederik during his visit to Vietnam later this year. Currently, both countries have limited textile and apparel trade and the proposed visit of Danish delegation is expected to help boost bilateral trade. Recently, deputy director general of the Confederation of Danish Industry (DI) Thomas Bustrup met Vietnamese Ambassador to Denmark Luong Thanh Nghi in Copenhagen. Bustrup said in the meeting that the two countries share many common interests and hold increasingly substantive and comprehensive relations, and many Danish businesses intend to expand their operations abroad, and Vietnam has emerged as a potential destination. He sought assistance from the Vietnamese embassy for Vietnam visits by Danish enterprises in the coming time. Nghi spoke highly of the active role and efforts of the confederation in intensifying the two countries’ economic and investment ties. The ambassador informed his host on the embassy’s plan to organise a forum on September 5 in Copenhagen, on VietnamDenmark cooperation in digital and green transformation – the two priority fields that Vietnam is focusing on implementing, with the cooperation and support of many international partners, including Denmark. He sought the DI’s help in holding the forum, affirming that his embassy and domestic agencies will coordinate closely with Danish agencies and organisations, including DI, to successfully organise the trip to Vietnam by Danish businesses in company with Crown Prince Frederik in early November. Denmark and Vietnam have very little trade of textile products. According to Fibre2Fashion’s market insight tool TexPro, Vietnam had exported apparel worth $61.156 million to Denmark in 2021, i.e., mere 0.20 per cent share of its total apparel exports of $31.213 billion during the year. Denmark had imported apparel worth $5.273 billion from the entire world in last year, of which import from Vietnam was 1.36 per cent. The data shows that both the countries have capacity to increase trade and business in textile sector.
Source: Fibre 2 Fashion
The owners of private inland container depots (ICDs) raised tariffs for handling export laden containers by 25 per cent due to price hike of the diesel. The decision was taken today in a meeting between the leaders of Bangladesh Inland Container Depots Association (BICDA) and Bangladesh Freight Forwarders Association (BAFFA) at the BAFFA office at Banani in Dhaka. Confirming it, BICDA Secretary General Md Ruhul Amin Sikder said after the two hour long fruitful meeting leaders of the two organisations unanimously agreed about raising two types of tariffs including export stuffing package and VGM (verified gross mass) charge by 25 per cent. The new rates would be effective from August 6. The export stuffing package has been raised for a 20-foot container from Tk 5,092 to Tk 6,365 and for a 40-foot container from Tk 6,790 to Tk 8,488. The package is a combination of charges for carrying an empty container from depot's own yard to its CFS (container freight station), loading of export cargoes into the container at the CFS, taking the loaded container back to the depot yard and later transport of the laden container from the depot to the port for shipment. Moreover, the VGM charge taken for weighing an export load container was Tk 1,415 and it was raised by Tk 354. Freight forwarders usually pay these charges on behalf of the international buyers. BICDA Secretary General, however, said these charges are the highest rate fixed by BICDA while many ICDs individually take lower than these rate under bilateral deal with the buyers. The raise would be effective based on those rates only, he said. BICDA President Nurul Qayuum Khan, First Vice President SAJ Rizvi and Vice President Khalilur Rahman attended the meeting on behalf of BICDA while BAFFA President Kabir Ahmed, Senior Vice President Amirul Islam Chowdhury, Vice President Khairul Alam Sujan and Nurul Amin led BAFFA.
Source: The Daily Star
US-Cambodia trade was worth $5.892 billion in the first seven months this year—up by 45 per cent compared to the same period last year. Cambodia exported $5.695 billion worth of goods to the United States during the period, a year-on-year (YoY) increase of 47 per cent, while Cambodia’s imports from the there rose to over $196 million—up by 3 per cent YoY. The general department of customs and excise under Cambodia’s ministry of economy and finance released the figures recently, according to domestic media reports. The country’s major exports to the United States include textiles, footwear, travel goods and agricultural products, while its primary imports are vehicles, animal feed and machinery.
Source: Fibre 2 Fashion
