The Dollar Business January 2017 preview

www.thedollarbusiness.com

Vol.4

Issue 01

January 2017

100

$2

EXCLUS IVE IN SID E H.E. LESEGO ETHEL MOTSUMI High Commissioner of Botswana to India HARISH RAWAT Chief Minister, Uttarakhand PETER SCHIFF President & CEO, Euro Pacific Capital Inc. HARRY S. DENT JR. Founder, Dent Research RACHEL ZIEMBA MD, Emerging Markets & Global Research, Roubini Global Economics ...AND MANY MORE!

WHAT’S IN STORE FOR GLOBAL TRADE IN

WORLD TRADE SENTIMENTS IMPROVED IN 2016. DESPITE BEING A YEAR LITTERED WITH NATURAL AND MAN-MADE SHOCKS, IT PROVED THE VALIDITY OF THE ECONOMIC PRINCIPLE OF UPTURN-AND-DOWNTURN CYCLES. WITH 2017 PROMISING TO BE A BIGGER INNING FOR GLOBAL ECONOMICS, THE DOLLAR BUSINESS ANALYSES KEY ELEMENTS THAT WILL DECIDE THE FATE OF WORLD TRADE IN THE NEW YEAR.

Plastic toys

Frozen shrimps

Low risk, high demand & great margins

What makes India its largest exporter

No kidding!

A prize catch, indeed

Policy focus

Brand rate fixation

All you wanted to know about the scheme

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Volume: 4 Issue: 01 January 2017 www.thedollarbusiness.com

H.E. LESEGO ETHEL MOTSUMI

facebook.com/tdbIndia twitter.com/TheDollarBiz in.linkedin.com/in/thedollarbusiness/ President (VMPL) & Editor-in-Chief EDITORIAL & RESEARCH Editor Executive Editor Associate Editor (Print) Associate Editor (Online) Senior Editor (Print) Assistant Editors (Print) Assistant Editors (Online) Principal Correspondent

HIGH COMMISSIONER OF BOTSWANA TO INDIA Talks about Botswana-India bilateral relationship and discusses the ways and means to strengthen it further

: Steven Philip Warner

: Manish K. Pandey : Indranil Das : Andres Meren Molier : Sheela Mamidenna : Niladri S. Nath : Neha Dewan, Ahmad Shariq Khan, Sairaj Iyer, Manishika Miglani, Anishaa Kumar : Aamir Hussain Kaki : Deepak Kumar

20 COVER STORY

EDITORIAL CONSULTING BOARD Founder & Editor : Anil Goyal Publisher : Avnish Goyal Chief Consulting Editor : Dr. A. K. Sengupta Editorial Advisors : Dr. N. K. Goyal (CMAI), Atul Kumar Saxena (IIA) ADVERTISEMENT SALES & MARKETING Associate Vice-President : Lalit Seth Deputy General Manager : Roosevelt Fernandes Assistant Manager : Maitreya Biswas Senior Executive : Ayesha Fatima International Representatives Seoul (South Korea) London (UK)

: Justin Yoon (+82-2-6241-4256) : S. Puri (+44 207 376 1996)

ART & PHOTOGRAPHY Art Director Senior Designer Designer Photographer

: Sujesh Kumar G. : Shaik Masthan Vali : Gopal Ganesh Reddy : Dileep Kumar

THE DOLLAR BUSINESS ONLINE Project Managers : Sridhar Bodla, Omar Larzi SEO Manager : Sangameshwar Soma SEO Specialist : Praveen Kukunarapu Asst. Mgr. (Data & Metrics) : C. Dileep Reddy Associates (Data & Metrics) : Dinesh Reddy, Bhanu Prasad CIRCULATION, SUBSCRIPTION & DISTRIBUTION General Manager : S. S. Sudesh Manager - Subscriptions : M. Vinay Kumar Assistant Managers : Sanjeev Jain, Buddhi Sagar Pandey, Rajneesh Laroiya ALLIANCES & COMMUNICATIONS Sr. Manager : Rasanpreet Kaur Deputy Manager : Anupama Polasa Asstt. Manager : Sravya Palakuru FINANCE & LOGISTICS Manager

: Parchuri Jhansi

PRINTER Kala Jyothi Process Pvt. Ltd., 1-1-60/5, RTC Cross Road, Musheerabad, Hyderabad, Telangana 500020, IN PUBLISHED AT 5-2-198/4, Distillery Road, Ranigunj, Secunderabad, Telangana 500003, IN

© Copyright 2017 No part of this magazine may be reproduced in whole or in part without an expressed permission of the publisher. The information on this magazine is for information purpose only. Manish K. Pandey, Editor, The Dollar Business, is responsible for the selection of news and content under PRB Act. Vimbri Media Pvt. Ltd. assumes no liability or responsibility for any inaccurate, delayed or incomplete information, or for any actions taken in reliance thereon. The information contained about each individual, event or organisation has been provided by such individual, event organisers or organisation without verification by us. All disputes are subject to exclusive jurisdiction of competent courts and forums in Hyderabad, Telangana.

Printed and published by Avnish Goyal for Vimbri Media Pvt. Ltd. Published at 5-2-198/4, Distillery Road, Ranigunj, Secunderabad - 500 003, Telangana.

Printed at: Kala Jyothi Process Pvt. Ltd., 1-1-60/5, RTC Cross Roads, Musheerabad, Hyderabad - 500 020, Telangana.

FOR EDITORIAL/CONTENT Email: editorial@thedollarbusiness.com FOR ADVERTISEMENT Email: ads@thedollarbusiness.com FOR SUBSCRIPTION Email: subscription@thedollarbusiness.com . +91-40-67609999 For queries / comments you can send us an SMS at +91-888-633-1947

6 THE DOLLAR BUSINESS II JANUARY 2017

IS WORLD TRADE POISED TO CLIMB OUT OF THE DOLDRUMS IN 2017?

From Trump’s victory in US elections to Brexit, from passage of the GST bill to demonetisation, 2016 has been an eventful year for both the world and India. The impact of these epochal events is bound to start playing out in 2017. Will Trump’s maverick policies change how trade functions worldwide? Is Brexit the beginning of the end for the EU? Will GST be implemented in 2017? Will the commodity market turnaround?

The Dollar Business gazes into the crystal ball to figure it all out for you.

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HARISH RAWAT

ANWAR SHIRPURWALA

CHIEF MINISTER OF UTTARAKHAND On plans to make the hilly state a popular destination for foreign and domestic investors

8

INBOX

LETTERS TO THE EDITOR

62

Readers’ feedback, criticism, and appreciation that hit our mailbox in December 2016

10

SPOTLIGHT

BOTSWANA The economy remains highly dependent on diamond exports

MONOLOGUE

EXECUTIVE DIRECTOR, MAIT Discusses the association’s evolving objectives & the problems faced by the ICT industry

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PEOPLE SPEAK

Arun Jaitely on implementation of GST, Angela Merkel on a single market system & more

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GLOBAL TRADE

16

INDIA TRADE

The suspense over China’s MES status, setbacks for French Foie Gras exports & more

Impact of demonetistion on GDP, extension of MIP on steel products & much more

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SECRET INGREDIENT

FROZEN SHRIMP India is the largest exporters of this delicacy. But exporters continue to face multiple hurdles!

IMPOR’TONOMICS

PLASTIC TOYS There’s no ebb in demand for the product and margins are attractive if you import from China

POLICY FOCUS

BRAND RATE FIXATION Are exporters shying away from brand rates for duty drawbacks due to a lack of awareness?

TDB FORUM

Questions about foreign trade that hit our mail box in December 2016

DATEBOOK

94

Some must visit trade shows

98

Editor’s column

BORDERLINE

JANUARY 2017 II THE DOLLAR BUSINESS 7

COVER STORY

WORLD TRADE IN 2017

DEMONETISATION

GOODS & SERVICES TAX

FOREIGN POLICY

EMERGING THREATS

COMMODITIES

WILL WORLD TRADE COME OUT OF THE DOLDRUMS IN 2017?

The year gone by was eventful, both for the world and India. While the much-awaited Goods and Services Tax (GST) was passed by the Indian Parliament, United Kingdom voted to exit the European Union. While Donald Trump took the world by surprise, Indian Prime Minister Narendra Modi's sudden announcement of demonetisation left the whole country in a financial shock. The global commodity market too woke up from a slumber, though there is more recovery that can be made. While these and many other such events shook the world in 2016, their impact on global trade and policy environments will only likely be seen in 2017. Will 2017 be a year of change for the better? The Dollar Business takes a look at key elements and occurrences that could change world trade in 2017.

THE DOLLAR BUSINESS INTELLIGENCE UNIT

BREXIT

20 THE DOLLAR BUSINESS II JANUARY 2017

JANUARY 2017 II THE DOLLAR BUSINESS 21

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