Economic cooperation grows between India-Jamaica in ICT, pharmaceuticals and SME sector

New Delhi, 20 Dec (KNN) The bilateral trade between India and Jamaica investment is currently on the rise. Besides the cooperation in solar energy and training of professionals. As of late, quality pharmaceutical exports at affordable prices by Indian pharmaceutical companies have also been increasing to Jamaica and the Caribbean region, assisting in meeting the region's health care needs.

R. Masakui, High Commissioner of India to Jamaica has set himself on a mission to strengthen the bonds that Jamaica and India share. In an interview with the Jamaica Gleaner, he stated that he aims to pick up from where his predecessor left off and continue to build on the good work. Increasing economic cooperation, especially in the fields of ICT, pharmaceuticals and SMEs, as well as deepening people-to-people contacts is something that is high on the agenda. Also, it is seen that there is a lot of scope for cooperation in the field of climate change, with both India and Jamaica being at the receiving end of it in a major way. Jamaica has already joined the International Solar Alliance (ISA), an initiative started by India and France.

Masakui looks forward to assisting with the planning and execution of solar power projects in Jamaica under this initiative. Another area of cooperation is in disaster management, Jamaica being prone to hurricanes and landslides. India has already invited Jamaica to join the Coalition for Disaster Resilient Infrastructure (CDRI), an international coalition of countries, multilateral bodies, and the private sector, to promote disaster-resilient infrastructure.

India enjoys huge capacity as far as technical and skill-based training is concerned, something it has been sharing with Jamaica through its Indian Technical and Economic Cooperation Programme (ITEC). He aims to increase the number of Jamaican travelers to India for technical and skill-based education, which will have a greater positive impact on Jamaica. As far as multilateral cooperation is concerned, further enhancing the India-CARICOM relation as well as coordination at the UN on issues of extremism and terrorism, UN reforms, etc.

Both Jamaica and India are developing countries and share common aspirations for accelerated economic growth, eradication of poverty, improvement in the quality of life of their people, and promotion of equity. India and Jamaica have shared stakes in shaping the emerging architecture of various multilateral institutions to address existing inequities and addressing major contemporary issues related to energy security, food security, climate change, international terrorism, and in securing South-South cooperation. Both countries have consistently supported each other's candidatures in elections to various UN bodies and other multilateral organizations.

Investments for MSMEs in Jamaica and Established Indian businesses in Jamaica 

The Government of Jamaica established Jamaica first ever Micro, Small, Medium Enterprises (MSME) policy in 2013. The Policy has subsequently been revised in 2018 set out a framework for creating a more enabling business environment, increasing access to financing, enhancing business development support, innovation, etc. One of the implementing agency for the policy is the Jamaica Business Development Corporation with support from the MSME Unit in the Ministry of Industry, Investment and Commerce (MIIC). Under the policy several multi-sectoral public-private working groups have been establish to implement the MSME Policy. One such is the Business Enabling Environment Working Group (BEEWG) which was formed to facilitate MSME development as well as linkages through various government agencies.

It is estimated that the Government of Jamaica spends 30% of GDP on procuring goods and services annually. According to STATIN Jamaica’s GDP in 2018 stood at J$1,817,994,000,000  – about J$ 1.8 trillion – making public procurement at 30% a sizable J$545,398,200,000.

The government in 2019 undertook two reforms aimed at giving greater access to Jamaican businesses to this pot of money. The two measures, the first a 20% Set Aside for MSMEs and the second a Domestic Margin of Preference are set to add much-needed opportunities to Jamaican businesses.

The 20% MSME Set aside is just that, a set side of 20% of Government procurement for MSMEs. For MSMEs that is just over a billion-dollar market just for them.

The Domestic Margin of Preference allows for national bidder participating in an international bidding an opportunity to earn a government contract even if its bid price exceeds the bid price of a foreign bidder by up to 20%. The national bidder, however, must demonstrate that it will include at least 35% domestic content.

Additionally, the SEZ regime also has special provisions for MSMEs investors which lowers the investment requirements for up to 4 years for ease of entry. Moreover, the JSEZA works with other agencies like the JBDC to offer business development support to these SEZ MSME Occupants.