In this video, we will discuss the reasons for India losing the strategic deal in Bangladesh.
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You know, India and China have been competing hard to become strategic partner of Dhaka Stock Exchange. In order to know more about the background, please watch our this video.
You know, In comparison to 22 Taka per share price quoted by Chinese consortium, Indian National Stock Exchange offered lower 15 Taka per share price.
Keeping in view this price difference, Dhaka Stock Exchange approved the Chinese bid, but Bangladesh Securities and Exchange Commission asked the Dhaka Stock Exchange board to once again scrutinize both proposals.
Very significantly, after this decision, the local media of Bangladesh claimed, that Bangladesh government was trying to favor India.
Bangladesh office of Transparency international, which is corruption watchdog, strongly condemned this and called it unethical and illegal meddling by India in the internal affairs of Bangladesh.
Though India tried to put forward its case assertively, but the kind of message went across to the people of Bangladesh is simply a public relation disaster.
Needless to say, we failed to communicate our message here, and negative perception against India has been strengthened.
More importantly, After the second round of review, Dhaka Stock exchange has reconfirmed its decision about approving Chinese consortium's bid.
As details are emerging, besides quoting lower price for each share of Dhaka Stock Exchange, Indian bidder failed to show whether it had received approval from Securities and Exchange Board Of India and Reserve Bank Of India. Please note, such approval is necessary for Indian National Stock Exchange to transfer funds to Bangladesh.
We got to use harsh words, this is shameful act of negligence, and No body can blame Bangladesh for awarding the Dhaka Stock Exchange strategic partner status to Chinese Consortium.
Anyways, now reconfirmed decision of Dhaka Stock Exchange will once again go to Bangladesh Securities and Exchange Commission, and in all likelihood, the approval will be granted.
Now look at Chinese approach to this whole deal.
Though size of Dhaka Stock Exchange is small, but considering the long term strategic value of the deal, Chinese consortium offered way better price.
In addition, Thanks to Lower labor cost, Chinese factories are moving production lines to Bangladesh, which is also on the route of Belt and Road initiative. Moreover, this successful investment will pave the way for Chinese consortium to go for more overseas acquisition in future to expand their business.
Just because we are neighbor, we should not expect that Bangladesh would accept our relatively worse and incomplete offer.
In this background, Prime Minister of Bangladesh has also clearly said, that India should not worry about growing Chinese influence in Bangladesh.
Since Bangladesh is thinking about its own people and want them to become beneficiary of China funded development.
As far as we think, this defeat in Bangladesh calls for serious introspection in Indian firms. If we can not come up with competitive and complete offer, its waste of time and national resources even to prepare such offer.
China has deep pockets, Hence we can not outbid Chinese proposal only on the basis of price. Hence, In wholesome manner, we got to thing strategically to compete and win against china.
As per your views, what India could have done differently to win this strategic deal in Bangladesh?
Please let us know your views in comment section below.
Please find the reference links of this video in the description box below. Thank you friends.