Merz is on an official visit to India on January 12-13 accompanied by a high-level delegation. This was his first official visit to India and his first visit to Asia as the Chancellor.

Indian PM Narendra Modi and German Chancellor Friedrich Merz recently reaffirmed their commitment to fully realise the untapped economic potential on both sides through SMEs, start-ups, digitalisation, AI and innovation-driven enterprises.
Merz is on an official visit to India on January 12-13.
Both leaders invited companies from the other side to invest and expand businesses in their countries.

Modi invited German companies to invest and expand businesses in India to benefit from its strong economic growth, business-friendly environment, large highly-skilled workforce and immense opportunities to scale up operations.

Merz recommended Germany as an attractive location for investment by Indian companies.

The India-Germany Strategic Partnership completed 25 years in 2025 and diplomatic ties between the two countries complete 75 years this year.

The two leaders addressed India-Germany CEOs Forum in Ahmedabad.  Merz is also visiting Bengaluru with engagements focusing on business and technological collaboration, a release from the Indian Prime Minister’s Office said.

India-Germany bilateral trade in goods and services surpassed $50 billion in 2024, amounting to over 25 per cent of India’s trade with EU.

Both leaders reiterated their support for the conclusion of the India-EU Free Trade Agreement as a key outcome of the upcoming EU-India Summit, which will facilitate trade flows and inject further momentum into German-Indian economic relations.

Both leaders interacted with leading chief executive officers (CEOs) and industry leaders from either sides to encourage more business collaboration and investment in technology, automotives, defence, shipbuilding, smart infrastructure, pharmaceuticals, chemicals, biotechnology, industrial equipment engineering and energy.

They welcomed the signing of a joint declaration of intent on strengthening the bilateral economic cooperation through the German-Indian CEO Forum, which will further promote business and industry collaboration, supported by the long-standing presence of German businesses in India and Indian businesses in Germany.

The leaders noted that 2026 marks half-time of the commitment period of the Green and Sustainable Development Partnership (GSDP), and expressed satisfaction at implementation of this flagship initiative between India and Germany.

Fibre2Fashion News Desk (DS)

The newly announced rates will apply to goods shipped between January 1 and June 30, 2026.

Bangladesh Bank has announced a package of export incentives and cash assistance across 43 sectors to boost exports.
Domestic textile units will receive 1.5-per cent alternative cash assistance in lieu of duty drawback or bonded warehouse facilities.
The new rates will apply to goods shipped between January 1 and June 30, 2026.
SMEs in the garment sector are eligible for a 3-per cent incentive.

This maximum 10-per cent rate is allocated to several sectors, including diversified jute products, leather goods, processed agricultural products and light engineering products.

Exporters targeting the eurozone will receive an additional 0.50 per cent. Small and medium enterprises (SMEs) in the garment sector are eligible for a 3-per cent incentive.

Entities within the Bangladesh Economic Zones Authority, Bangladesh Export Processing Zones Authority and high-tech parks are eligible for incentives ranging from 0.5 per cent to 2 per cent, depending on the category of the goods and the nature of the industry, according to domestic media reports.

Fibre2Fashion News Desk (DS)

They are now allowed to source up to cent per cent of inputs from any country while maintaining tariff-free access to the United Kingdom.

Sri Lankan garment manufacturers secured unprecedented access to the UK market under liberalised trade rules beginning January 1.
They are now allowed to source up to cent per cent of inputs from any country while maintaining tariff-free access to the UK.
There are fewer processing requirements now, removing the previous rule that two significant manufacturing processes must take place in Sri Lanka.

Hence, there are fewer processing requirements now, removing the previous rule that two significant manufacturing processes must take place in Sri Lanka, a statement by the High Commission said.

The liberalised rules also include the creation of an Asia Regional Cumulation Group of 18 countries applicable to all other exports from Sri Lanka.

“By simplifying rules of origin, we are supporting Sri Lanka’s economic growth by improving market access to the UK and helping to further diversify exports,” the British High Commissioner to Sri Lanka Andrew Patrick said.

“We recognise Sri Lankan government’s ambition for export growth and continue to advocate for improved utilisation of the scheme,” he said.

Sri Lanka’s Joint Apparel Association Forum (JAAF) welcomed the decision.

The United Kingdom is now Sri Lanka’s second-largest garment export market, valued at nearly $675 million.

Fibre2Fashion News Desk (DS)