Bahrain
(Source : Embassy of India, Bahrain)
As per MOIC, Bahrain overall trade volume with India during 2016 was nearly $1 billion (US$990 million), a 31% increase from 2015. Imports were around $500m and exports about $487m. Non-oil trade alone was US$649m. There was substantial increase in Bahrain’s oil export to India as compared to the last year.
Indian Investment in Bahrain (company-wise and sector-wise), and performance of existing Indian Subsidiaries/Joint Ventures/Collaborations, if any in Bahrain
Indian investment in Bahrain
As per MOIC, Bahrain, there are 23 branches of prominent Indian companies registered in Bahrain covering aviation, services management, engineering, banking and telecommunications. There are 3,181 companies registered in Bahrain with Indian partnership, and cover a wide spectrum of business activities including jewellery, textiles & tailoring, paints, supermarkets, restaurants, general trading, IT, management & consulting services. In January 2016, there were some 212,000 non-resident Indian workers and investors registered in Bahrain.
India’s total capital investment into Bahrain between January, 2003 to January, 2016 was US$ 1060.80 mn - FDI projects are around 40, with average project size of US$ 26.50m (with 81 jobs). Financial Services has highest investment value. Real Estate generated max. jobs, while Automotive Components (as an individual sector), on an average, has largest project size, in terms of both investment value and job creation. Other major sectors of Indian capital investments in Bahrain are plastics, chemicals, software & IT, healthcare; business services; hospitality etc. As per Economic Development Board, Bahrain, some more Indian companies have invested in Bahrain during 2016 viz. Maxexposure; Mukta Arts (A2 cinema); Dynaxcel; Ampersand Technologies (Get Baqala- grocery delivery startup); Wiz & Associates (with individual loss adjustor license); Techpac WLL and ICL. On 5.6.2017, Tata Communications signed an agreement with Batelco, Bahrain, further strengthening their partnership and to extend reach of their global data centre, cloud and connectivity solutions to their customers with high levels of flexibility and reliability through Tata Communications’ IZO Cloud Enablement Platform. Indian multinational VA Tech Wabag, which is presently executing a US$91 mn, 40,000 cubic metres per day state-of-the-art wastewater treatment plant for Housing Ministry, is vigorously trying to get contracts for at least six more projects in the Kingdom. Other major business groups are also exploring investment options under recent initiatives such as the Make in India, Digital India, Start-up India etc. As an outcome of PHDCCI’s ‘India Business Partnership Summit”, held on 7.2.2017 in Bahrain, Al Fanar Investment Holding Co., Bahrain, is in touch with some of the Indian cos. for future tie ups. As per EDB Indian investments in Bahrain have been increasing and every year India is among the top four countries investing in Bahrain.
Bahrain’s investment in India
Bahrain is not in a position to make significant investments abroad and has sought Indian investment in Bahrain through joint ventures. But Bahrain’s investments into India have shown increasing trend in the past three years. As per RBI/DIPP statistics, cumulative FDI equity inflows from Bahrain into India were as follows :
|
Year
(April-March)
|
cumulative FDI inflows from
Bahrain into India (US$ Mn)
|
|
2013-14
|
3.10
|
|
2014-15
|
16.98
|
|
2015-16
|
15.34
|
|
2016-17
|
109.05
|
|
April-June, 2017
|
12.51
|
As per RBI/DIPP statistics, cumulative FDI inflows from Bahrain into India from April 2000 onwards also have registered marked increase from US$ 53.30 mn in December 2015 to US$ 157.43 mn in June, 2017 (.05% of total FDI into India). Bahrain now ranks third among GCC countries after UAE & Oman from the viewpoint of FDI equity inflows into India. These figures do not include recent Bahrain investments in India in the manufacturing sector, which includes an investment of US$ 54 mn. (Rs.354 crores) by Midal Cables for manufacturing aluminium cables in the State of Odisha; US$10 mn by Al Manaratain group for a construction material manufacturing unit in Mangalore; US$ 50 mn by Al Namal Group for a township development project near Bengaluru as well as other investments in electro-mechanical equipment/parts manufacturing units and hospitality sector. Main sectors of Bahrain’s investments into India are : scientific instruments; non-conventional energy; mechanical & engineering industries; services sector; IT & software; glassware; and construction activities. So, presently the bilateral trade and investment ties are witnessing a positive trajectory.
Analysis of Investment opportunities in Bahrain
Mission‘s consistent efforts to promote bilateral trade, investment & technological ties, especially in the context of flagship initiatives such as Make in India, Digital India etc. have had a positive impact, India’s total capital investment having crossed US$ 1 bn.
Bahrain has a large scale infrastructure/energy project pipeline which offers opportunities for Indian companies to invest in Bahrain and for increasing market access. EXIM Bank Buyers Credit Scheme could play an important role in supporting project exports by review of the existing arrangements to make it more competitive. It has also created opportunities for increasing market access particularly for iron, steel, electrical machinery/equipments; boilers, mechanical appliances, vehicles, ships, boats and floating drilling structures; plastic and construction materials. Bahraini businesses have also shown interest in sourcing their requirements of machinery & parts thereof, engineering goods and expertise in services sector from India, shifting away from their traditional sources in the West.
Important policy changes by the government of Bahrain, especially with respect to trade, investment, aid/credit facilities etc.
Value Added Tax [upto 5%, from 1.1.2018] : On 1.2.2017, Bahrain signed unified GCC VAT agreement and GCC’s unified agreement on selective taxation. It is expected to create more jobs for accountancy executives and will increase government revenue by BD200-300 million as per CBB. According to KPMG in Bahrain, VAT will soon be a reality and compliance formalities will start affecting businesses even before VAT is practically implemented.
Position of Bahrain on WTO / other important multilateral fora related issues. Recent important changes in policy and public opinion in these areas
Asian Parliamentary Assembly’s Economic & Sustainable Development Committee meeting : A blueprint for major future development goals of Asian countries was approved in Bahrain on 26.4.2017 to achieve six targets by 2030 viz.: unified energy market, combating poverty, common markets, joint environmental legislation, setting up sustainable development targets and integrated water & sewage networks for all.
UN’s Sustainable Development Solution Network report raised the status of Bahrain [at 41st place] in this year’s World Happiness Report.
Ethiopia
(Source : Embassy of India, Addis Ababa)
According to Ethiopian Revenues and Customs Authority, bilateral trade stood at US$768.4 million from January to August 2017, out of which India’s exports to Ethiopia were US$737.5 million and imports were US$30.9 million. Exports from India consisted mainly of primary and semi-finished iron and steel products, food items, drugs and pharmaceuticals, transport goods, machinery and instruments, etc. Major imports by India from Ethiopia were: pulses, seeds, spices, semi precious stones and leather. India is the second most important source of imports for Ethiopia, contributing 7.26% of all of Ethiopia’s imports next to China. However, total trade has come down to US$ 768.4 million from January to August 2017 from US$921 million in previous year same period. Indian exports to Ethiopia faced unfavourable conditions like penetration of low-priced Chinese goods into Ethiopian marke and shortage of foreign exchange in the market. Ethiopia’s export to India has reduced to US$30.9 million in January to August 2017 from US$58.1 million in previous year same period.
Ethiopia
(Source : Embassy of India, Addis Ababa)
Bilateral Trade: According to Ethiopian Revenues and Customs Authority, bilateral trade stood at US$768.4 million from January to August 2017, out of which India’s exports to Ethiopia were US$737.5 million and imports were US$30.9 million. Exports from India consisted mainly of primary and semi-finished iron and steel products, drugs and pharmaceuticals, machinery and instruments, manufactures of metal, etc. Major imports by India from Ethiopia were: semi precious stones, pulses, leather, oil seeds and vegetables & seeds. India is the second most important source of imports for Ethiopia, contributing 7.26% of all of Ethiopia’s imports next to China. However, total trade has come down to US$ 768.4 million from January to August 2017 from US$921 million in previous year same period. Indian exports to Ethiopia faced unfavourable conditions like penetration of low-priced Chinese goods into Ethiopian marke and shortage of foreign exchange in the market. Ethiopia’s export to India reduced to US$30.9 million in January to August 2017 from US$58.1 million in previous year same period.
Libya
(Source : Embassy of India, Tripoli)
Exports by India to Libya during the period 2016-17 stood at US$ 120.46 million and India’s imports from Libya went down to US $ 7.45 million. Thus the trade decreased substantially mainly because of civil strife in Libya and decrease in oil production due to militia fighting and perennial strikes.
The main items of India’s exports to Libya are transport equipment, processed minerals, machinery & instruments, coffee, drugs & pharmaceuticals, natural silk yarn, fabrics and other commodities. The main item of India’s imports from Libya is petroleum (crude and products).
Namibia
(Source : High Commission of India, Windhek)
Second and final tax amnesty ends in March 2018
The Ministry of Finance confirmed on September 5, 2017, that it would implement a second and last tax amnesty. The second tax amnesty was introduced due to the fact that, after the first tax amnesty that was introduced in February 2017, only N$ 243 million, or approximately 6% of the N$ 4 billion owed to the State in taxes had been collected. The second tax amnesty commenced on September 11, 2017 and will run until March 11, 2018. The aim of the tax amnesty is to collect all outstanding taxes owed to the State and to offer a limited-time reprieve to taxpayers with outstanding tax balances to settle their capital amounts in full and pay only part of their interest charges.