Gold surged to a record high above $5,000 an ounce on Monday, extending a historic rally as investors piled into the safe-haven asset amid rising geopolitical tensions.

Bullion added 64% to its value in 2025, its biggest annual rise since 1979, driven by a mix of safe-haven demand, bets on US rate cuts, robust central-bank buying, de-dollarisation trends and inflows into exchange-traded funds. It is up 18% so far this year.

Here are some ways to invest in gold:

Spot market

Large buyers and institutional investors usually buy gold from big banks. Prices in the spot market are determined by real-time supply and demand dynamics.

London is the most influential hub for the spot market, with the London Bullion Market Association setting standards for gold trading and providing a framework for the over-the-counter market to facilitate trades among banks, dealers and institutions.

China, India, the Middle East and the US are other major gold-trading centres.

Futures market

Investors can also get exposure to gold via futures exchanges, where people buy or sell a particular commodity at a fixed price on a particular date in the future.

COMEX, part of the New York Mercantile Exchange, is the largest gold futures market in terms of trading volumes.

The Shanghai Futures Exchange, China's leading commodities exchange, also offers gold futures contracts. The Tokyo Commodity Exchange, popularly known as TOCOM, is another big player in the Asian gold market.

Exchange-traded products

Exchange-traded products or exchange-traded funds issue securities backed by physical metal, allowing people to gain exposure to gold prices without taking delivery of the metal itself.

Global gold ETFs saw record inflows in 2025, led by North American funds, according to World Gold Council data. Annual inflows surged to $89 billion.

Bars and coins

Retail consumers can buy gold from traders selling bars and coins in shops or online. Gold bars and coins are both effective means of investing in physical gold.

Investors in top consumers China and India have moved more towards purchasing bars and coins as opposed to jewellery amid surging spot prices.

What drives the market?

Investor interest and market sentiment

Rising interest from investment funds in recent years has been a major factor behind bullion's price moves, with sentiment driven by market trends, news and global events fuelling speculative buying or selling of gold.

Foreign exchange rates

Gold is a popular hedge against currency market volatility. It has traditionally moved in the opposite direction to the US dollar, since weakness in the US currency makes dollar-priced gold cheaper for holders of other currencies and vice versa.

Monetary policy and political tensions

The precious metal is widely considered a safe haven during times of uncertainty.

US President Donald Trump's trade tariffs have over the last year sparked a global trade war, rattling currency markets.

Trump's capture of Venezuelan leader Nicolas Maduro and aggressive statements on acquiring Greenland have added to volatility since the start of 2026.

Global central banks' policy decisions also influence gold's trajectory. Lower interest rates reduce the opportunity cost of holding gold, since it pays no interest.

Central bank gold reserves

Central banks hold gold in their reserves, and demand from this sector has been robust in recent years because of macroeconomic and political uncertainty.

The World Gold Council said in its annual survey in June that more central banks plan to add to their gold reserves within a year despite high prices.

Net central bank purchases in November totalled 45 metric tons, World Gold Council data showed, pushing the figure for the first 11 months of 2025 to 297 tons as emerging market central banks continued their significant gold buying.

China kept adding gold to its reserves, with its holdings totalling 74.15 million troy ounces at the end of December from 74.12 million in the previous month as it extended its buying spree for the 14th month in a row.

Poland's central bank, which held 550 tons of gold at end-2025, aims to lift reserves to 700 tons, Governor Adam Glapinski said this month.

The United States is in talks with Chevron, other crude producers, and major oilfield service providers about a plan to quickly raise Venezuela's crude production, Bloomberg News reported on Saturday, citing senior administration officials.

Officials have discussed deploying SLB, Halliburton and Baker Hughes to repair and replace outdated equipment, and refresh older drilling sites, the report said.

Reuters could not immediately verify the report. The White House, Chevron, SLB, Baker Hughes and Halliburton did not immediately respond to Reuters' requests for comment.

With limited investment, Venezuela could boost production by several hundred thousand barrels over the short term, the report said, adding that modern US equipment and techniques could revitalise existing wells and bring new production online within months.

US President Donald Trump said on Friday that US oil companies will soon start drilling for oil in Venezuela. Trump has been clear about his desire to boost oil production in Venezuela following the capture of the country's leader, Nicolas Maduro.

The National Board of Revenue (NBR) is moving to fully automate value-added tax (VAT) and income tax refunds to make the process faster, more transparent, and less burdensome for taxpayers, NBR Chairman Md Abdur Rahman Khan said yesterday.

“Automated VAT refunds have already been introduced, and income tax refunds will follow the same path,” Khan said at a press briefing at NBR headquarters in Agargaon, held for International Customs Day.

He acknowledged that minor glitches might occur initially, saying such issues are inevitable when launching a new system. Similar problems were faced and resolved when e-return filing was introduced.

Refund disbursement has already started, which Khan called a “major development.” He added that automation will gradually extend to income tax refunds as well.

The main goal is to reduce direct interaction between taxpayers and officials. “The greater the distance, the greater the transparency,” Khan said.

According to him, the system would significantly reduce complaints, allow real-time tracking and ensure refunds are issued within a much shorter timeframe. If necessary, the law will be amended in the future to further strengthen the system.

Khan also said the government is working to rationalise overall tariff structure ahead of the country’s graduation from least developed country (LDC) status.

“A report on tariff transformation has been submitted to the chief adviser, including recommendations for reducing duties,” he said, adding that Bangladesh cannot maintain high tariffs after LDC graduation.

However, he said duties had been increased in some areas to protect domestic industries, while rejecting claims of frequent duty hikes.

“In the past one and a half years, we have not increased tariffs to raise revenue. Instead, in the public interest, we reduced duties on imports of rice, onions, potatoes, and soybeans,” he added.

Addressing concerns about rising fruit and import-dependent goods prices, Khan said the main reason is the sharp depreciation of the taka against the US dollar, not taxes or customs duties.

“The dollar has risen about 40 percent -- from Tk 80 to Tk 85 two years ago to around Tk 126 to Tk 127 now -- raising import costs significantly,” he said.

He added that no new duties were imposed on fruit imports during this period. “In fact, income tax on fruit imports was cut from 10 percent to 5 percent, and duties on date imports were reduced significantly,” he said.

On the planned restructuring of the NBR into two separate divisions, Khan said the matter will be finalised after a secretaries’ committee meeting.

“Once the division of responsibilities is decided, a gazette will be issued, and organograms and designations will be adjusted accordingly,” he added.

The NBR chairman also hinted at a possible extension of the January 31 deadline for individual income tax returns. “We will consider it if some registered taxpayers miss the deadline,” he said, adding that no final decision has been made.

Garment manufacturers and investors in export processing zones (EPZs) have warned that a three-day general holiday around the upcoming national election could disrupt production and hurt exports.

The government has already declared February 10 to 12 as general holidays in industrial areas in connection with the national parliamentary election and referendum scheduled for February 12.

In response, the Bangladesh EPZ Investors Association has written to the Bangladesh Export Processing Zones Authority (Bepza), urging it to reconsider the plan. Bepza has said it is reviewing the matter in consultation with relevant stakeholders.

Khorshed Alam, executive director (Enterprise Service) of BEPZA, told The Daily Star that the authority received the EPZ investors’ letter yesterday and has already started discussions.

“We received the letter on Sunday. We will discuss the matter with all concerned parties, including relevant ministries, stakeholder associations, and factories inside and outside EPZs,” he said. “We will try to ensure that holidays in all industrial areas are observed at the same time during the election period.”

He added that BEPZA cannot take a decision on its own and that discussions are ongoing, with a final decision to be made at an executive board meeting.

In the letter, EPZ investors said enterprises in the zones follow production and shipment schedules agreed upon with international buyers months in advance, leaving little room for sudden changes.

Unplanned holidays, the association warned, would disrupt production, delay shipments and could result in penalties, order cancellations and loss of buyer confidence.

Garment factory owners outside EPZs raised similar concerns in a separate letter sent on Saturday to the secretary of the Ministry of Labour and Employment.

They said February already has fewer working days because of Shab-e-Barat, International Mother Language Day and weekly holidays. With the three additional holidays now declared for the election, the number of effective working days would fall to 19, which could seriously disrupt export-oriented garment production.

The letter also said global demand for garments has remained weak in recent months, with both orders and prices declining, forcing some factories to shut down. In this situation, factory owners are struggling to manage February wage payments and upcoming Eid-ul-Fitr bonuses.

Both garment manufacturers and EPZ investors have urged the government to consider declaring only election day as a mandatory general holiday in industrial areas. As an alternative, they suggested adjusting the holidays on February 10 and 11 against weekly or annual leave through an executive order.

Gold prices in Bangladesh have surged once again, with the Bangladesh Jewellers Association (Bajus) setting a new all-time high for the precious metal.

According to a notification issued tonight (25 January), Bajus increased the price of 22-carat gold by Tk1,574 per bhori, fixing it at Tk2,57,191 — the highest ever in the country's history.

The new rates will come into effect from tomorrow.

Bajus said the decision was taken following a rise in the price of pure gold (tejabi gold) in the local market, considering the overall market situation.

Under the revised prices, 21-carat gold will be sold at Tk2,45,527 per bhori, 18-carat gold at Tk2,10,419 per bhori, while gold under the traditional method will cost Tk1,72,919 per bhori.

In addition to the selling price, buyers will have to pay a mandatory 5% VAT set by the government and a minimum 6% making charge fixed by Bajus. However, the making charge may vary depending on the design and quality of jewellery.

Bajus last adjusted gold prices on 23 January, when the price of 22-carat gold was raised by Tk6,299 to Tk2,55,617 per bhori.

With the latest revision, gold prices have been adjusted 13 times in the current month alone — increased on 10 occasions and reduced three times.

Alongside gold, silver prices have also been increased. Bajus raised the price of 22-carat silver by Tk350 per bhori, fixing it at Tk7,232, marking the highest silver price in the country's history.

According to the new rates, 21-carat silver will cost Tk6,940 per bhori, 18-carat silver Tk5,949 per bhori, and silver under the traditional method Tk4,432 per bhori.

So far this year, silver prices have been adjusted eight times, with increases on six occasions and decreases twice.

The European Union and Vietnam will elevate ties during a visit to Hanoi by the European Council President Antonio Costa on Thursday, an EU official said, as both sides seek to expand international partnerships amid disruptions from US tariffs.

The visit comes on the heels of To Lam's re-appointment as Vietnam's top official, potentially making Costa the first leader of a major power to meet Lam since the ruling Communist Party on Friday appointed him for a new term as general secretary.

The elevation of ties to Vietnam's highest level has been planned for months and was delayed largely because of schedule complications, the official said, speaking on condition of anonymity.

It would place the EU on the same tier as China, the US and Russia among others, further expanding Vietnam's advanced partnerships, in line with the country's strategy of balancing big powers.

The European Council declined to comment. Vietnam's government did not respond to a request for comment.

These upgrades are largely symbolic, as they merely entail more frequent high-level meetings and usually no binding agreements.

Vietnam's relations with the United States worsened last year after the Trump administration imposed tariffs, despite the upgrade of bilateral ties inked by former president Joe Biden during a visit to Hanoi in late 2023.

More cooperation on tech, minerals

The upgrade with the EU is expected to generate more cooperation in multiple fields, including research, technology, energy and critical minerals, according to a draft joint statement, the official said. Vietnam has significant but often little exploited deposits of rare earths, gallium and tungsten.

The Southeast Asian trade-reliant nation is a major link in global supply chains, especially for electronics, clothing and footwear. It has a string of free trade agreements with multiple partners, including with the European Union.

The EU has repeatedly criticised Vietnam's implementation of the free trade agreement, which has boosted Vietnam's surplus with the 27-nation bloc since it came into force in 2020. The EU deficit with Hanoi stood at 42.5 billion euros ($50.26 billion) in 2024.

EU officials accuse Hanoi of hampering EU imports with multiple non-tariff barriers, but Brussels has so far taken limited action to address the situation.

Also, facing tariffs from the United States, the EU has prioritised improving ties with economic partners and expanding trade agreements, including recently with South American nations of the Mercosur bloc.

Costa will visit India before Vietnam, where together with European Commission President Ursula von der Leyen, he intends to hold trade talks with Indian Prime Minister Narendra Modi, according to a schedule published by the EU Council.

The government plans to gradually phase out the long-standing excise duty in the country, citing the need to balance revenue considerations, National Board of Revenue (NBR) Chairman Abdur Rahman Khan said today (25 January).

Speaking at a press conference at NBR headquarters in Dhaka, on the eve of International Customs Day, the NBR chief said that the government had taken a step in this direction by withdrawing excise duty on bank deposits up to Tk300,000 last year.

"We have sent a signal that we will gradually move away from this (excise duty)," he said, adding that a complete removal at once is not feasible due to potential revenue shortfalls.

Currently, excise duty is imposed on bank deposits and airfares. Deposits up to Tk300,000 are exempt, while higher amounts are taxed at different slabs. Airfares are also taxed at varying rates for domestic and international passengers. NBR sources estimate that the duty generates around Tk6,000 crore annually.

NBR extends income tax return deadline to 31 January

Addressing concerns about revenue replacement, a senior NBR official, speaking on condition of anonymity, said the withdrawal would be phased out gradually, with revenue to be offset by other sectors, including tobacco.

"We expect to collect an additional Tk10,000 crore from the tobacco sector this fiscal year due to policy measures," the NBR chairman said.

The official also questioned the fairness of excise duty on bank deposits, arguing that it distorts tax equity. "Even if someone takes a loan, excise duty is deducted simply because the money is deposited in a bank. Besides this, there is VAT on services and other taxes. This is unjustified," he said. Regarding airfares, he indicated that VAT could replace excise duty if it is withdrawn.

Abdur Rahman Khan further highlighted government efforts to reduce import duties, noting that a draft plan has already been submitted.

He said several initiatives have improved the ease of doing business, including releasing 90% of imported consignments from ports within a day, though traders still raise concerns over product valuation at the import stage.

Meanwhile, the NBR chief hinted at a possible further extension of the deadline for individual income tax return filings, which is currently set to expire on 31 January.

At the same event, the chairman said that the board might consider more time if a significant number of registered taxpayers fail to submit their returns by the current cutoff.

However, he clarified that a formal decision has not yet been made.

According to NBR data, about 4.7 million individuals registered to file tax returns this year, with 3.4 million already submitted. This leaves approximately 1.3 million yet to file within the remaining six days. The original deadline of 30 November had already been extended twice, giving taxpayers a total of two additional months.

Bangladesh's overall inflation rate edged up further in December, driven mainly by a faster rise in food prices, according to the Economic Update & Outlook (January 2026) released today (25 January) by the General Economics Division (GED) of the Planning Commission.

General inflation increased to 8.49% in December, up from 8.29% in November, reflecting renewed upward pressure from the food basket amid persistently high non-food inflation.

Food inflation rose to 7.71% in December from 7.36% a month earlier, while non-food inflation remained elevated at 9.13%, indicating continued cost pressures beyond food items.

The GED report says the acceleration in food inflation during the month was largely led by higher prices of fish and other protein items, although rice inflation continued its downward trend across all categories, offering some relief to consumers.

Despite inflationary pressures, the report highlighted several positive developments in the broader economy. External sector stability improved, supported by export recovery, strong remittance inflows and resilient import demand.

At the same time, bank deposits maintained double-digit growth, while private sector credit growth showed a modest uptick in November, according to the report.

On the fiscal front, the government has finalised the FY2025–26 Annual Development Programme (ADP) in line with budget priorities, aiming to support growth and social development.

The report also highlights the launch of the SDG village piloting initiative by the GED to advance localisation of the Sustainable Development Goals.

As part of the pilot phase, three villages – Telikhali in Khulna, Sonar Para in Kurigram and Mitingachori in Rangamati – have been selected to implement an integrated, village-level development framework.

The initiative will involve baseline surveys, need-based interventions, resource mobilisation, and a monitoring and evaluation framework, with lessons expected to inform scaling up in other lagging regions.

The initiative aims to operationalise national SDG priorities at the grassroots level by addressing multidimensional development gaps in a coordinated and inclusive manner.

According to the GED report, the SDG village piloting initiative will be implemented through baseline surveys, need-based interventions, resource mobilisation, and a monitoring and evaluation framework.

The lessons and experiences from the pilot villages are expected to scale up sustainable development programmes in other villages and lagging regions of the country.

BSRM Steel reported that its revenue jumped by 47% year-on-year to reach at Tk5,976 crore in the July-December of FY26.

According to the company's price sensitive statement filed on the Dhaka Stock Exchange today (25 January), its net profit rose by 10% to Tk193 crore during the first half of FY26, compared to the previous year during the same period.

At the end of first half, its earnings per share stood at Tk5.14.

Meanwhile, during the second quarter (October-December) its revenue grew by 31% to Tk3,339 crore and the net profit rose by 6% to Tk95 crore.

The General Economics Division (GED) has projected a delicate balance between a recovering growth trajectory and persistent structural hurdles, saying the economy could grow at 5.0 per cent in the current calendar year.

According to the January 2026 Economic Update and Outlook released on Sunday by the GED under the Planning Commission, the economy will expand by 5.0 per cent in 2026.

The report highlights a "fragile but resilient" recovery as the country navigates a complex democratic transition and prepares for its graduation from the Least Developed Country (LDC) category.

It notes a significant rebound in economic activities compared to the previous fiscal year.

Provisional data for the first quarter of FY26 shows real Gross Domestic Product (GDP) growth rising to 4.50 per cent, a sharp increase from the 2.58 per cent recorded in the same period last year.

The GED said the most pressing concern remained the stubbornly high inflation, which was currently outpacing wage growth and squeezing household purchasing power.

While price inflation increased by 0.20 percentage points last month, wage inflation only grew by 0.03 percentage points to 8.07 per cent, indicating that real income was falling behind.

On a positive note, the external sector showed signs of stabilisation.

Gross foreign exchange reserves strengthened to $33.19 billion in December 2025.

Remittance inflows hit a robust $3.22 billion that month, aided by a more favourable exchange rate and regulatory incentives.

Earnings stabilised at roughly $4.0 billion per month, with the readymade garment (RMG) sector continuing to provide the bulk share of foreign currency.

The GED cautioned that despite the 5.0 per cent growth outlook, several risks could derail the recovery.

"The economy will require strong governance, policy consistency, and sustained investment in skills to diversify beyond the garment sector. Uncertainty among economic elites and institutional weaknesses remains a significant risk during this transition," the report said.

The indices of Dhaka Stock Exchange (DSE) experienced correction for the third consecutive session yesterday as the cautious investors book profit as brief gain on the trading floor amid lingering political uncertainty ahead of the February election.

The benchmark DSEX index shed 27 points to close at 5,072. The blue-chip DS30 index fell 15 points to 1,948, while the Shariah-based DSES index declined 8 points to end at 1,018.

Market turnover edged down by 1.68% to Tk527 crore, compared to Tk536 crore in the previous session. Of the 392 issues traded, 107 advanced, 225 declined and 60 remained unchanged.

Market insiders said the stock market is hovering near the bottom as political uncertainty continues to weigh on investor confidence. In this environment, informed investors are selectively buying fundamentally strong stocks but opting for small, short-term gains rather than waiting for sizeable returns. This trend has led to frequent corrections after brief upward movements.

Despite the current volatility, participants are expecting a positive trend either before or after the election.

Over the past year, political uncertainty and several decisions taken by the market regulator were not well received by investors. Many investors exited the market, while a large portion of institutional and high-net-worth investors remained largely inactive. This situation pushed down the prices of even fundamentally strong stocks.

Analysts said political uncertainty remains the single most critical factor influencing market sentiment. Although expectations are that easing uncertainty could lead to a more positive market direction, the lack of full clarity has kept institutional and large investors cautious, limiting trading volumes.

They added that ensuring policy stability and restoring investor confidence could unlock strong recovery potential for the capital market in the coming period.

All major large-cap sectors closed in negative territory yesterday. The Food & Allied sector recorded the highest decline, losing 1.01%, followed by NBFIs with a drop of 0.95%. The Engineering sector fell by 0.67%, while Pharmaceuticals declined 0.62%. The Fuel & Power sector shed 0.49%, Telecommunication slipped 0.39%, and the Banking sector posted the lowest loss among large caps at 0.25%. Meanwhile, block trades accounted for 1.9% of the total market turnover for the day.

The Chittagong Stock Exchange (CSE) also closed lower, with the CSCX index dropping 8 points to 8,821, and the CASPI index decreasing 13 points to close at 14,247 reflecting negative sentiment across both major bourses.

The Bangladesh Securities and Exchange Commission (BSEC) has rejected a 6% stock dividend proposal announced by Kay & Que (Bangladesh) for the financial year that ended in June 2025.

On 10 October last year, the engineering sector firm recommended a 4% cash and 6% stock dividend for its shareholders for FY25. The stock dividend component was subject to the approval by the BSEC.

According to its annual disclosure, the company had reported 1,316% growth in its earnings per share (EPS) for FY25, reaching Tk9.49 from Tk0.67 in the previous fiscal year.

The firm highlighted strong profitability growth in FY25, along with continued improvement in the first quarter of the current fiscal year. During the first quarter, its EPS rose 137% to Tk2.75, compared with Tk1.15 in the same period of the prior year, driven by higher sales turnover.

Today, Kay & Que's shares closed at Tk367.10 each, which was 0.43% lower than the previous trading sessions.

The company has recently made an "A2P Aggregator Agreement" with Robi Axiata, under which KAY & QUE will act as an A2P (Application-to-Person) Aggregator for Robi Axiata, providing services related to the delivery of SMS and notifications from various applications and digital platforms to end users. The company expects this partnership to positively influence its future revenue growth.

BSRM Limited reported that its consolidated net profit dropped by 11% year-on-year to Tk78.70 crore in the October to December of FY26.

Meanwhile, in the first half of this fiscal year, its consolidated revenue rose by 18% to Tk4,756 crore and the consolidated net profit inched up to Tk202 crore, compared to the previous year during the same period.

At the end of the first half, its consolidated earnings per share stood at Tk6.79.

Bangladesh’s economic outlook for 2026 points to a potential growth of around 5 percent, with expectations of easing inflation, as per a recent government report. However, structural challenges remain, which will require strong governance and policy consistency.

The report by the General Economics Division (GED) of the Bangladesh Planning Commission -- titled Economic Update & Outlook January 2026 -- notes that macroeconomic stability is expected to improve.

Despite that, sustaining growth will require investment in skills and technology to diversify the economy beyond garments. This step is particularly significant as the country approaches graduation from the least developed country (LDC) category and navigates an ongoing democratic transition.

Recent data show signs of recovery. Provisional quarterly national accounts estimates released by the Bangladesh Bureau of Statistics indicate that economic activity strengthened in the first quarter of FY2025-26.

On a point-to-point basis, real growth rose to 4.50 percent, up from 2.58 percent in the same quarter a year earlier. Provisional estimates also suggest overall GDP growth at constant prices reached 3.72 percent in FY2024-25, with final figures to be benchmarked against annual GDP using internationally accepted methods.

The GED report underscores the importance of a stable and reformed political environment, alongside effective integration of technology, to shift the economy from low-cost labour dependence to higher-value activities.

The report cautions that risks persist from institutional weaknesses and elite uncertainty. With progress on the Sustainable Development Goals remaining slow, it recommends evidence-based policymaking and targeted village-level interventions to support inclusive and sustainable development.

India plans to slash tariffs on cars imported from the European Union to 40% from as high as 110%, sources said, in the biggest opening yet of the country's vast market as the two sides close in on a free trade pact that could come as early as 27 January.

Indian Prime Minister Narendra Modi's government has agreed to immediately reduce the tax on a limited number of cars from the 27-nation bloc with an import price of more than 15,000 euros ($17,739), two sources briefed on the talks told Reuters.

This will be further lowered to 10% over time, they added, easing access to the Indian market for European automakers such as Volkswagen, Mercedes-Benz and BMW.

The sources declined to be identified as the talks are confidential and could be subject to last-minute changes. India's commerce ministry and the European Commission declined to comment.

'Mother of all deals'

India and the EU are expected to announce 27 January the conclusion of protracted negotiations for the free trade pact, after which the two sides will finalise the details and ratify what is being called "the mother of all deals.

The pact could expand bilateral trade and lift Indian exports of goods such as textiles and jewellery, which have been hit by 50% US tariffs since late August.

India is the world's third-largest car market by sales after the US and China, but its domestic auto industry has been one of the most protected. New Delhi currently levies tariffs of 70% and 110% on imported cars, a level often criticised by executives, including Tesla chief Elon Musk.

New Delhi has proposed slashing import duties to 40% immediately for about 200,000 combustion-engine cars a year, one of the sources said, its most aggressive move yet to open up the sector.

This quota could be subject to last-minute changes, the source added.

Battery electric vehicles will be excluded from import duty reductions for the first five years to protect investments by domestic players like Mahindra & Mahindra and Tata Motors in the nascent sector, the two sources said.

After five years, EVs will follow similar duty cuts.

Market currently dominated by Suzuki and local makers

Lower import taxes will be a boost for European automakers such as Volkswagen, Renault and Stellantis, as well as luxury players Mercedes-Benz and BMW which locally manufacture cars in India but have struggled to grow beyond a point in part due to high tariffs.

Lower taxes will allow carmakers to sell imported vehicles for a cheaper price and test the market with a broader portfolio before committing to manufacturing more cars locally, said one of the two sources.

European carmakers currently hold a less than 4% share of India's 4.4-million units a year car market, which is dominated by Japan's Suzuki Motor as well as homegrown brands Mahindra and Tata that together hold two-thirds.

With the Indian market expected to grow to 6 million units a year by 2030, some companies are already lining up new investment.

Renault is making a comeback in India with a new strategy as it seeks growth outside Europe, where Chinese carmakers are making strong inroads, and Volkswagen Group is finalising its next leg of investment in India through its Skoda brand.

The European Union has suspended Generalised Scheme of Preferences (GSP) tariff benefits for a wide range of Indian exports from January 1, a move expected to significantly raise duties on shipments to the 27-nation bloc and weaken India’s price competitiveness in key sectors, according to a report by The Hindu.

The suspension applies to the 2026-2028 period and covers India, Indonesia and Kenya, the Official Journal of the European Union said, citing a regulation adopted by the European Commission on September 25, 2025.

The decision comes at a sensitive time, as India and the EU are expected to announce the conclusion of negotiations for a free trade agreement (FTA) on January 27.

According to trade think tank Global Trade Research Initiative (GTRI), about 87 percent of India’s exports to the EU will now face higher most-favoured-nation (MFN) tariffs following the withdrawal of GSP concessions. Only around 13 percent of exports, mainly agriculture and leather products, will continue to enjoy preferential access.

Under the GSP, Indian exporters were able to ship goods to the EU at duties below MFN rates. For example, an apparel item attracting a 12 percent tariff paid only 9.6 percent under the scheme. From January 1, exporters must pay the full duty.

The EU has removed GSP benefits across almost all major industrial sectors, including textiles and garments, plastics and rubber, chemicals, iron and steel, machinery, electrical goods and transport equipment, which together form the backbone of India’s exports to Europe. While the EU has periodically reduced preferences in the past, this marks a complete withdrawal for three years.

GTRI Founder Ajay Srivastava said Indian exporters will face higher trade barriers in the near term, compounded by rising compliance costs and the rollout of the EU’s Carbon Border Adjustment Mechanism. He warned that in price-sensitive sectors such as garments, the loss of GSP could divert EU buyers toward duty-free suppliers like Bangladesh and Vietnam.

India’s goods trade with the EU stood at $136.53 billion in 2024-25, with the bloc accounting for about 17 percent of India’s total exports.

After repatriating a record amount of profit as dividends to its owners last year, Marico Bangladesh – a subsidiary of India-based multinational personal care major Marico Limited – is now set to remit Tk448 crore to India for the first nine months of the current financial year 2025-26.

In FY25, Marico repatriated over Tk1,000 crore to its owners in India as dividends. The dividend figure was an all-time high, according to company data.

Its financial statements show that in the first nine months, Marico's dividend payout ratio stood at 99.62%, meaning the company retained less than 1% of its profit and paid out almost its entire earnings as dividends.

During April to December – covering the first nine months of the financial year, as it runs from April to March – Marico Bangladesh posted a profit of Tk497.97 crore with earnings per share (EPS) of Tk158.09.

During the first nine months of the current financial year, it declared a 1,575% interim cash dividend based on its audited quarterly profit, with the latest 475% interim cash dividend of Tk47.5 for each share for the third quarter during the October to December quarter.

As the majority shareholders in the Bangladesh subsidiary, Marico Limited will receive the majority of this payout.

Already, Marico Bangladesh had disbursed the previous two quarters (April to September) interim cash dividend to its shareholders, including both local and Indian owners.

In the previous year, Marico Bangladesh paid the record 3,840% cash dividend or Tk384 against each share, including 1950% cash dividend and 1890% interim dividend in the previous three quarters.

The dividend payout was 204.8%, which is significantly higher compared with the last five financial years.

The lowest dividend payout was 13.7% in FY24, meaning it retained its majority profit earned as there were foreign currency shortage and foreign investors were facing hurdles to repatriate dividends.

Of the total Tk1209.60 crore dividend for FY25, Marico repatriated Tk1088.10 crore – or equivalent to 90% to India to owners of the company as the owners held 90% stake of the company, and the rest 10% availed by the local investors – including institutional and general shareholders.

Strong revenue, profit growth

According to its audited financial statement ending in December, Marico's year-on-year revenue grew by 24% to Tk1,545.16 crore, while its net profit after tax grew by 8.54% to Tk497.97 crore with an EPS of Tk158.09.

At the same time as the previous financial year, its revenue was Tk1,245 crore and net profit Tk458.79 crore.

It said through a disclosure on stock exchanges on Sunday, EPS has increased in the third quarter of FY26 as compared to Q3 of FY25 due to increased revenue and optimisation of operating expenses.

Its net operating cash flow per share stood at Tk109.79 in the Q3 (Oct-Dec) against Tk88.35 in the same time of the previous year due to higher collection from customers.

Its net asset value per share by the end of December declined to Tk92.22, which was Tk239.13 as of March 2025 due to the declaration of final dividend for FY25, and interim dividends for FY26, said Marico Bangladesh.

On Sunday, its share price closed at Tk2,770.40 each on the Dhaka Stock Exchange, a 0.23% higher from the previous trading session.

Two listed companies of BSRM Group, the country's largest steel manufacturer, posted a combined 33% growth in revenue to Tk10,732 crore during the July-December period of the 2025-26 fiscal year, driven mainly by higher sales price amid volatile market conditions.

The growth in revenue, however, was not matched by a similar rise in profitability as elevated business costs continued to weigh on earnings.

According to their half-yearly financial statements, both BSRM Limited and BSRM Steels Limited recorded higher topline performance in the first half of the fiscal year, but net profit growth remained modest due to rising raw material prices, higher financing costs and overall inflationary pressures.

BSRM Limited, which is primarily engaged in the production of mild steel products through its melting, rolling and re-rolling mills, reported an 18% year-on-year increase in consolidated revenue to Tk4,756 crore in the first half of FY26.

During the same period, the company's consolidated net profit edged up to Tk200 crore, while earnings per share stood at Tk6.79.

Despite the improvement over the six months, the company's second-quarter results reflected pressure on profitability. In the October-December quarter, consolidated revenue rose 14% to Tk2,411 crore, but consolidated net profit declined by 11% year-on-year to Tk78.70 crore, with earnings per share falling to Tk2.64.

The company said the weaker quarterly profit was mainly due to higher operating and input costs.

On the stock market, shares of BSRM Limited closed 1.67% lower at Tk81.80, while its market capitalisation fell by Tk53.74 crore to Tk2,442 crore.

BSRM Limited has an annual production capacity of 1.75 lakh tonnes of MS rod and 11.25 lakh tonnes of billet, making it a major supplier to the country's construction and infrastructure sectors.

According to the company, it continued to operate in a challenging environment marked by domestic economic pressures and global uncertainty.

Meanwhile, BSRM Steels Limited posted a stronger revenue growth compared to its sister concern. It reported a 47% jump in revenue to Tk5,976 crore in the first half of FY26, while net profit rose by 10% to Tk193 crore. Earnings per share for the period stood at Tk5.14.

In the second quarter alone, the company recorded a 31% increase in revenue to Tk3,338 crore, supported by higher sales volume and price adjustments. Net profit during the quarter increased by 6% to Tk95.50 crore, with earnings per share reaching Tk2.54.

Despite the improved financial performance, the company's share price also declined, closing 2% lower at Tk68.60. Its market capitalisation dropped by Tk52.66 crore to Tk2,579 crore.

BSRM Steels manufactures MS billets, which are the basic raw material for rods, using scrap and sponge iron, and subsequently produces MS products through re-rolling mills. The company has an annual production capacity of 12.50 lakh tonnes of billets, 5 lakh tonnes of MS products and 1 lakh tonnes of wire rods.

The Bangladesh steel industry, estimated to be worth around Tk75,000 crore, plays a crucial role in national infrastructure development and industrial employment.

As the market leader, BSRM has continued to supply steel to major national projects, including bridges, railways and power infrastructure, according to the company's annual report for FY25.

However, the operating environment remained highly volatile during the period. At home, political uncertainty and macroeconomic challenges such as foreign exchange volatility, tight liquidity conditions due to higher interest rates and persistent inflation put pressure on operating costs and consumer demand.

Internationally, ongoing geopolitical conflicts disrupted global supply chains and added to uncertainty in commodity markets.

BSRM also reported a decline in sales volume of MS rods during the first half of the fiscal year, mainly due to weaker domestic consumption and slower implementation of large infrastructure and private development projects.

These factors limited the group's ability to turn higher revenue into stronger profit growth.

Despite the headwinds, BSRM said it continued to focus on operational discipline, cost optimisation and quality assurance to maintain consistent product standards and plant reliability.

The group also pursued strategic initiatives to improve process efficiency and strengthen supply chain resilience in order to mitigate rising input costs and market volatility.

Planning Adviser Dr Wahiduddin Mahmud today (25 January) said the government is moving away from financing large-scale development projects through foreign loans and stressed the need for avoiding a 'debt trap'.

"We do not want to take loans for big projects unnecessarily. Institutions like the World Bank often come with many project proposals. If some are genuinely high priority, we may consider them. But these issues are now being discussed and assessed very carefully," he told reporters after an ECNEC meeting.

The adviser said the government will accept loan-funded projects only if they are of critical national priority and cannot be financed or implemented with domestic resources or expertise. He noted that some initiatives, such as pollution monitoring, do not justify large loans or foreign consultants.

"Measuring pollution is not that difficult. The instruments involved are not extraordinarily complex. There is no need to take large foreign loans for such purposes," he said.

He added that as Bangladesh prepares for LDC graduation, interest rates on foreign loans are rising, making them more expensive and underscored the importance of relying on domestic capacity.

The adviser also warned against attractive but unnecessary projects offered by multilateral lenders like the World Bank and the Asian Development Bank (ADB).

"We will take only those loan projects that are truly necessary, where foreign support is genuinely required. Everything else should be done with our own resources, even if on a smaller scale," he said. He also highlighted the government's intention to reduce long-standing dependence on loans in social sectors, including education.

"There is no point in becoming trapped in a vicious cycle of debt. We want to move away from heavy reliance on loans in all sectors," he added.

Garment buying house entrepreneurs have warned that the commerce ministry's proposal to withdraw bonded warehouse facilities on the import of yarn of 10 to 30 counts could harm the country's readymade garment (RMG) sector and unsettle international buyers.

They described the proposal as "self-destructive" and urged the government to offer alternative support to domestic textile millers instead of withdrawing bonded facilities.

The concerns were raised at a press conference titled "The Country's Readymade Garment Industry in Crisis: A Struggle for Survival", organised by the Bangladesh Garment Buying House Association (BGBA) at its office in the capital today (25 January).

BGBA President Mohammad Mofazzal Hosen Pabel said the proposed decision had pushed the RMG sector "to the brink of death" and had triggered serious concerns among global buyers.

For several months, the country's textile millers and garment manufacturers have been at odds over duties and restrictions on yarn imports from India and other countries.

On 12 January, the commerce ministry requested the National Board of Revenue to withdraw bonded warehouse facilities for importing 10-30 count yarn, citing the need to protect domestic spinning mills.

The request followed appeals from the Bangladesh Textile Mills Association (BTMA) and recommendations from the Bangladesh Trade and Tariff Commission.

However, RMG sector leaders alleged that the commerce ministry's move was one-sided. Several textile and garment sector associations have held press conferences and sent letters to the government strongly opposing the move.

"Several buyers have expressed concern over the ongoing discord between the country's RMG and textile sectors," Pabel said, adding that many had already begun shifting their 2026 orders to competing countries.

He said global buyers and large retailers were increasingly worried about the overall business environment in Bangladesh, including political instability and security concerns.

"Buyers have expressed worries over safety, factory closures and reports of frequent mob violence," the BGBA president said, adding that disputes over yarn imports would further damage confidence.

Pabel also alleged that competitor countries were portraying Bangladesh negatively in global markets and that some buyers had imposed travel restrictions on visits to the country.

Responding to a question, he said any disruption to the RMG sector would ultimately affect buying houses, which act as a bridge between international buyers and local manufacturers.

Opposing the withdrawal of bonded facilities, he urged the government to provide incentives and policy support to make the textile industry more competitive.

"The government should make the spinning sector self-reliant so that RMG manufacturers can buy yarn from domestic sources at prices even 30 cents lower," he added.

He also said the association expected the next elected government to consult all relevant trade bodies on policy decisions affecting the textile and garment sectors, rather than holding discussions with a limited number of organisations.

Joint consultations would help identify core challenges and future prospects and lead to sustainable solutions, he said.

"As spinners are demanding the withdrawal of bonded facilities, it shows they are facing problems, while cutting bonded facilities would affect RMG manufacturers. Only joint dialogue can lead to solutions," he added.

Pabel said every policy decision carried both positive and negative consequences, but argued that the proposed move was taken through an unfair process involving only a few parties.

He warned that while some groups might benefit initially, the decision could prove harmful in the long run, particularly if export orders decline and begin to affect the textile sector as well.