Trade Sentinel
Free, Real-Time Alerts and Analyses of South Asian Trade and Investment Policy
Jan 1, 2025, South Asia's Conundrum: Turning Potential into Sustained Progress -Sanjay Kathuria
South Asia has long been a region of untapped potential, lagging behind East Asia in economic progress, despite some remarkable successes. "China plus one" presents another opportunity for the region to capitalize on its demographic dividend Focusing on Bangladesh, India, Pakistan, and Sri Lanka. Major hurdles to their sustained progress, include protectionist trade policies, inadequate human capital, and a small labor force relative to population. For Sri Lanka and Pakistan, there are the additional challenges of coping with ongoing economic crises. The analysis suggests options to regaining/sustaining macroeconomic stability, while factoring in the fiscal dimension of climate change; acting urgently to deepen global and regional trade, to seize the moment; addressing the near crisis in human capital in many countries; accelerating digital solutions to improve governance and service delivery; and using regional cooperation to help build climate resilience The role of business elites in influencing economic policies is also discussed. Read More
Latest Trade Notifications
Dec 5, 2024
Bangladesh imposes a 2% export tax on synthetic and fabric-based footwear and bags. This tax applies to exporters who benefit from duty bonds or duty drawbacks on imported inputs used to manufacture these products for export. The tax rate will remain in effect until June 30, 2025.
Jan 31, 2025
Indian Budget for the fiscal 2025-26, keeps the trade stance largely unchanged. Laudable efforts to simplify while keeping the effective rates unchanged by HS code is proposed. FM's Speech Extract
Aug 20, 2024
Modifies the Export Facilitation Scheme Rules, 2021. While extending the potential eligibility of applicants beyond small and medium enterprises also removes the exemption for local taxes payable on domestically purchased inputs. Extends the scope of materials allowed without quantitative restrictions from a foreign supplier from "tags and printed material" to Buttons, belts, pads, Velcro tapes, hangers, special labels, price labels, tags, special buttons, push buttons, rivets, eyelets, buckles, special brand tags, zippers, locker loops, unit soles with heels, soles, heels, valves and bladders for footballs, textile designs, artwork transparencies, polypropylene woven and jute bags imported for use in readymade garments, foundation garments, textile made-ups, footwear etc."
Nov 30, 2024
Sri Lanka imposes a Special Commodity Levy (SCL) on potatoes (HS Code 0701.90) and big onions (HS Code 0703.10.20). The SCL rates are Rs. 60 per kg for potatoes and Rs. 10 per kg for big onions. These rates will remain effective until December 31, 2024.
Policy Trends
Bangladesh Para-tariffs are Relatively High on the Products of Agriculture and Allied Sectors, and Textiles, June 2024
Blogs
Feb 21, 2025
Sri Lanka’s New President Commits to Expanding Regional Trade Relationships and Pursuing Trade Reforms
As Sri Lanka concludes debt restructuring agreements, and the focus shifts to enhancing growth, the new President’s maiden budget speech has hinted at the policy pathway that can be expected. And it is encouraging. President and Finance Minister Anura Kumara Dissanayake Budget 2025 in Parliament last week (17th February), and the proposals relating to trade and competitiveness reforms demonstrated remarkable consistency with budgets of recent administrations, with commitments to trade reforms and expanding trade relations. It has helped.
Feb 1, 2025
South Asia as the Regional Energy Hub: Moving Towards Facilitating Trans-Regional Grid Interconnection and Energy Trade
South Asia is emerging as a key player in the global energy sector due to its growing energy demand, strategic location, and potential for renewable energy production. The region has made significant progress in cross-border electricity trade (CBET), with countries like India, Nepal, Bhutan, and Bangladesh actively exchanging power. India plays a central role in facilitating this trade by integrating its power grid with neighboring nations, enabling efficient electricity distribution.
A major development in 2024 was the first power transfer from Nepal to Bangladesh via India, marking a step towards a multilateral regional energy market. Initiatives like "One Sun, One World, One Grid" (OSOWOG) aim to enhance trans-regional energy connectivity, promoting renewable energy integration and reducing dependency on fossil fuels. The trans-regional grid interconnections needed for it can help expand energy cooperation beyond South Asia, fostering large-scale electricity trade. To achieve thi, regulatory coordination, investment in infrastructure, and financial incentives are necessary to ensure seamless energy exchange. Establishing regional regulatory forums, standardizing grid codes, and encouraging foreign investments will be crucial for success.
With electricity demand expected to reach 810 GW by 2040, South Asia is well-positioned to become a global energy hub. Strengthening energy cooperation and integrating renewable sources will lower electricity costs, improve energy security, and support economic growth. By leveraging regional collaboration and technological advancements, South Asia can shape the future of clean energy trade and become a leader in global energy markets. Read More
TariffCompare
A tool to compare Current (2023-24) Import Tariff rates at more than 5000 individual tariff line levels - by a comparison table or a visual. It also displays the latest trade related notifications issued by the government for the relevant product picked, if available.