Indo-Dutch Chamber of Business & Sciences launched
By Deepak Arora
NEW DELHI, June 19: Netherlands visiting Vice Minister for Foreign Trade Marten van den Berg launched the Indo-Dutch Chamber of Business and Sciences (IDCBS) and unveiled its logo in the presence of Ambassador Alphonsus Stoelinga and Chairman IDCBS Rajesh Srivastava here on Sunday.
Speaking on the occasion, Minister Marten van den Berg said his visit would advance the friendship and good relations between the Netherlands and India and strengthen the basis for economic growth in various sectors such as agriculture, water management and sciences.
The Minister is accompanied by 15-member Dutch business delegation with knowledge and expertise in various sectors such as smart cities, high tech and cyber security. Besides Delhi, the delegation would visit Hyderabad and Bangalore.
He said Dutch businesses can establish valuable partnerships with their Indian counterparts. "For those participants who are already operating in the Indian market, this mission presents an opportunity to expand their network. For others, this mission can be an excellent first introduction to the Indian market and potential partners," he added.
The Minister said "the Indo-Dutch relationship is shaped by government-to-government relations, but also by excellent contacts between our business communities. We are one of India's five largest trading partners, and trade volumes between our countries have more than tripled in the past decade.
He said "the Dutch Ministry of Foreign Affairs works to foster an enabling environment so that Dutch companies large and small can succeed in India. The principles of corporate social responsibilities (CSR) are a crucial component of these efforts."
Minister Marten van den Berg said "the Netherlands works with partners at multilateral level to improve market access. At bilateral level, we work in areas such as trade and investment, science and technology, and CSR and sustainable production chains."
Ambassador of the Kingdom of the Netherlands Alphonsus Stoelinga said the two countries enjoyed centuries of friendship and trade. The first Dutch traders set foot on the Indian sub-continent in around 1615.
Quoting Prime Minister Narender Modi, who is embarking on a foreign trip next week, Ambassador said the PM was going first to the USA and Number Two to the Netherlands. "We are happy to be Number Two as we will be great gateway to Europe for the Indian businesses."
It may be mentioned that Prime Minister Modi is spending a day on July 27 after meeting US President Donald Trump on the previous day.
"India, as the maritime and aviation hub for South Asia, parallels the Dutch experience as the gateway to Europe. Our strategic position, each on our own continent, thus creates opportunities to work with each other," said Ambassador Alphonsus Stoelinga.
IDCBS Chairman Rajesh Srivastava explained that today was the reincarnation of the third generation of Indo-Dutch Chamber. "We wanted to have a chamber with best practices in corporate governance and ,therefore, it has been incorporated as Section 8 Company now."
Rajesh Srivastava said "We have widened the expanse of this organisation. Instead of just being a business, trade and commerce platform, we have expanded it to also include all social sciences -- cultural, educational and academics. He said we plan to have 100 members by month-end and 300 by next year.
CEPC Thanks Modi Govt For GST Rate Cut For Job Work In Carpets
By Deepak Arora
NEW DELHI, June 12: Chairman of Carpet Export Promotion Council (CEPC) Mahavir Sharma has thanked the Modi Government on behalf of the carpet industry for reducing the rate of GST for job work on textiles and related products.
The impact on carpet industry that was supposed to be almost 9 per cent on the FOB cost is now reduced to 3.5 per cent due to the cut, added the Chairman. The GST council had taken a favourable view in this regard in its meeting on June 11.
The CEPC Chairman has also requested the Governemnt to consider the impact of GST on Handmade carpet industry, both short term and long term. The impact will be similar in other tariff codes covering the sector.
Mahavir Sharma hoped that the government in the next GST meeting would reduce the tax on handmade carpets from 12 per cent to 5 per cent.
In a memorandum to the Government, he expressed industry's areas of concern as:
The capital blocked by the industry to the tune of 3.45 % for 6 to 9 months is high for small and medium carpet manufacturer and exporter. He will not be able to compete with large enterprises. And the strength of our industry and its penetration into interiors of INIDA lie with small and medium manufacturer.
Very cumbersome and complicated chain of production mostly involving rural, uneducated, unregistered weaver or dealer. We fear noncompliance of deposit of GST along the chain and hence cost going up and/or us not getting input credit or full refund.
Chairman Mahavir Sharma has requested for reduction of GST from 12 per cent to 5 per cent on all types of handmade floor coverings. This will be easy on the blocked capital for small and medium manufacturers and exporters.
Increase in Duty drawback rates to ward of the impact of noncompliance of GST deposit at certain levels by 3.5 % to the existing rates depending on whether the above point is agreed to or not.
As you are aware, he said, the Indian Handmade carpet industry with 90 per cent production being exported and the world leader with 32 per cent world market share and has machine made rugs as its biggest competition. It provided jobs to two million plus rural, illiterate, mostly women people across India, mostly in UP, Rajasthan, Haryana and Jammu n Kashmir. And the majority of the business is being run by tiny and small manufactures and their extra capital blocked will adversely impact the production and overall trade.
Mahavir Sharma hoped that the government in the next GST meeting will agree and listen to the request of the industry like it has in the case of job work and reduce the tax on handmade carpets from 12 per cent to 5 per cent.
World Bank sees improving global economy despite 'substantial' risks
By Deepak Arora
UNITED NATIONS, June 5: Thanks to a pickup in manufacturing and trade, the global economy is recovering, but weak productivity and investment growth threaten long-term prospects in developing economies, the World Bank reported.
In its latest global economic forecast, released yesterday, the World Bank forecasts growth in advanced economies will accelerate to 1.9 per cent this year, while it could pick up to 4.1 per cent in emerging markets. The average remains at 2.7 per cent, as reported in January.
“Growth among the world's seven largest emerging market economies is forecast to increase and exceed its long-term average by 2018,” according to the June Global Economic Prospects.
Recovering activity in these economies are likely to have “significant positive effects” for growth in other emerging and developing economies and globally, the report authors wrote.
Despite the positive prognosis, the World Bank warned that new trade restrictions and persistent policy uncertainty could dampen market confidence and investment.
“Over the longer term, persistently weak productivity and investment growth could erode long-term growth prospects in emerging market and developing economies that are key to poverty reduction,” the report noted.
One of the strong, solid news in the report is trade. Growth in this sector could top four per cent, a noticeable increase following the financial crisis low of 2.5 per cent last year.
“With a fragile but real recovery now underway, countries should seize this moment to undertake institutional and market reforms that can attract private investment to help sustain growth in the long-term,” said World Bank President Jim Yong Kim.
He urged countries to continue investing in people, and to build resilience against climate change, forced displacement and other overlapping challenging.
150 Indian companies to visit Canada to explore business opportunities
By Deepak Arora
NEW DELHI, June 1: The High Commissioner for Canada to India, Mr. Nadir Patel, is leading a delegation of 150 Indian companies to mark the 150th anniversary of Confederation of Canada or ‘Canada 150’. The visit is being organised in collaboration with the India-based Indo-Canadian Business Chamber (ICBC) and the Canada-based Indo-Canada Chamber of Commerce (ICCC).
Indian companies are visiting Canada to seek new partners, find opportunities to launch start-ups, explore investment opportunities, and identify new products and technologies for use in India. The delegation leaves on June 7 and concludes visit on June 10.
Speaking about the visit, High Commissioner Nadir Patel said: “Canada’s commercial relations with India are growing at a strong pace, yet there remain significant opportunities for further growth and collaboration between Canadian and Indian companies. This visit will provide Indian companies with first-hand knowledge about Canada’s strengths in various sectors and an opportunity to develop personal contacts with some of Canada’s top companies, while at the same time bring the India opportunity to Canada.”
Representatives of the participating companies will spend three days in Toronto where they will engage in business meetings with Canadian firms. They will also receive briefings on investment, visit potential partners and manufacturers, and participate in networking events.
Participants will also take part in the Canada-India Business Symposium and an annual Gala Awards Dinner, hosted by the ICCC.
Over the past two years, bilateral trade between India and Canada has increased by nearly 30%.
Canadian investment in India has grown significantly over the past two years, with an estimated $14 billion in new investment in India by Canadian institutional investors.
Over 1,000 Canadian companies are estimated to be active in India, of which 400 Canadian companies have a physical presence in India.
Canada has what India needs, and many Canadian companies are playing an active role in India’s flagship initiatives including Smart Cities, Skill India, Digital India, etc.
The Government of Canada has eight points of service across India, through the High Commission in Delhi, three Consulates General in Mumbai, Bengaluru, and Chandigarh, and four trade offices in Kolkata, Chennai, Ahmedabad and Hyderabad.
More than 1.3 million Canadians have Indian heritage, and the people to people ties between our two countries continue to grow.
India is the second largest source of international students in Canada, driven by a significant rise in bilateral education ties over the past two years.