Bangladesh’s growth story
- ‘Visit Bangladesh Programme’
- Bangladesh’s steady growth of around 8% is impressive.
- Foreign Minister A K Abdul Momen: once dubbed a “bottomless basket”, has now transformed into one of the most vibrant economies in the world.
- Robust economic reforms
- Remittances received from the Bangladeshi expatriate community
- Boost in exports
- In 1971, the nation used to import everything from abroad.
- Bangladesh Foreign Minister: “It was a big headache for us because we did not have any reserves and our credibility was also low. Some countries said they will not export anything to Bangladesh without any third party guarantee. The only country that helped us out in those difficult days was our next door neighbour India,”
- Other serious challenges facing the South Asian country is its large population and the lack of infrastructure.
- Prime Minister Sheikh Hasina targets
- middle income country as part of her “Vision 2021”a developed country as part of her “Vision 2041”
- Revenue Secretary Ajay Bhushan Pandey chaired a meeting of State and Central indirect tax officials.
- GST authorities will consult RBI and National Payments Corporation of India for access to bank account details and transactions of taxpayers.
- Reason: a) to curb tax evasion and b) boost revenue receipts
- The authorities would also explore the alignment of GST system with Financial Intelligence Unit (FIU) to obtain bank account details including PAN-based banking transactions.
- This was the 2nd such meeting where officials primarily deliberated on a mechanism for disseminating inter-departmental data among various tax agencies.
- The committee will come out with detailed standard operating procedure (SoP) within a week, which may be implemented across the country by January-end.
- The officials also agreed to undertake verification of unmatched input tax credit availed by taxpayers.
- This stood at 13% (Rs 1.7 lakh crore) of total credit claimed in FY18-19.
- New amendment made to the norms by the Insolvency and Bankruptcy Board of India (IBBI).
- The Insolvency and Bankruptcy Code (IBC) provides for time-bound and market-linked resolution process for stressed corporates.
- In case the resolution process does not materialise, then the entity goes for liquidation.
- A secured creditor cannot sell assets of a company undergoing liquidation process to any person barred from submitting an insolvency resolution plan.
- A secured creditor will have to contribute its share towards insolvency resolution and liquidation process costs and workmen’s dues within 90 days of the liquidation commencement date
FY20 GDP forecast
- India’s economic expansion will be just 5% in FY20
- The lowest since the global financial crisis of FY09.
- Slowdown in investment and private consumption might linger through the 2nd half of the fiscal.
- Growth in the 1st and 2nd quarters of this fiscal hit 5% and 4.5%, respectively
Close to tipping point of major recession
- Nobel laureates Abhijit Banerjee and Esther Duflo
- We are extremely close to a tipping point of a major recession.
- Compared the slowing growth of the economy to the 1991 economic crisis.
- Stimulating demand must be the focus to revive the growth story.
- On corporate tax cut, Banerjee said, the corporate sector is sitting on a bunch of cash actually.
- The only recipe to revive growth is to increase consumer confidence.
- The real estate sector, which has played a role in connecting the urban and rural sector, has slowed massively, forcing young men working in the sector to go back to their villages.
Trump & Modi
- Discussed ways to further strengthen the US-India strategic partnership and reviewed “regional security matters“.
- The conversation between Trump and Modi came a day after External Affairs Minister S Jaishankar on Sunday held a telephonic talk with US Secretary of State Mike Pompeo and voiced India’s concerns over the escalating tensions in the Gulf region.
- Recent incidents have heightened international concern and rattled global financial markets.
- During the conversation, the prime minister noted that India-US relations, which are built on trust, mutual respect and understanding, “have grown from strength to strength“.
- External Affairs Ministry said India has consistently advocated restraint and continues to do so and it is vital that the situation does not escalate further.
Malaysian palm oil
- India has informally asked palm oil refiners and traders to avoid buying Malaysian palm oil.
- Malaysian criticism of India’s actions in the Kashmir region and its new citizenship law.
- India is the world’s biggest buyer of the oil.
- Malaysian prices are the global benchmark for palm oil prices.