Striking the Right Note: Reinforcing Bilateral Economic Engagement Between India and Nepal
The Government of Nepal has placed a high priority on the industrial development in the country and is focused on the creation of an investment-friendly environment, increasing employment, production and productivity, and substituting imports and minimizi
The Global Competitiveness Index 2016-17 ranks Nepal on 98th position among the 138 countries which makes the Himalayan nation the fourth most competitive economy in South Asia. India is on the 39th position on the list. The bilateral trade between the two countries has increased extensively from US$3631.94 million in 2012-13 to US$5892.72 million in 2016-17.
Thus, it is an opportune time to invest in Nepal which was the clear message conveyed during the seminar on 'Indo-Nepal Trade and Investment Opportunities in Nepal' spearheaded by FICCI in partnership with the Embassy of Nepal in Hyderabad on 4 May 2018.
The seminar brought together prospective Indian investors as well as senior officials of the Embassy of Nepal for interactions on facilitating the Indian investments in various sectors including tourism, hydropower, construction, pharmaceuticals, textiles, wood and wood products, telecom, transport equipment, food processing, chemicals, light engineering, IT and ITeS.
Bharat Kumar Regmi, Charge d'Affaires, Embassy of Nepal, said that there are ample, ready-to-tap opportunities for investment and cooperation for Indian companies in different sectors in Nepal and invited Indian investors to invest in the country and reap rich dividends. He added that the year 2018 is a year of new beginnings in Nepal after successful conclusion of three tiers of elections, paving the way for political stability and good governance.
Highlighting the government's policy of attracting foreign investment, he called on Indian companies and entrepreneurs to utilize the opportunities for investing in various sectors in Nepal by taking full advantage of enormous possibilities available and the government's favourable industrial and investment policies.
Krishna Hari Pushkar, Minister-Economics, Embassy of Nepal, made a detailed presentation on various areas for potential investments in Nepal. He also urged business community to invest in Nepal while describing the government's support and facilitation measures to boost
the business relations mentioning competitive advantages available particularly in hydropower, infrastructure development and adventure tourism sectors. He reiterated that the Government of Nepal and the Nepalese private sector work well in tandem. Through sustainable economic development, Nepal is working towards political stability, peace building, trade facilitation and economic capacity building.
The Government of Nepal has placed a high priority on the industrial development in the country and is focused on the creation of an investment-friendly environment, increasing employment, enhancing production and productivity, and substituting imports and minimizing the trade deficit by promoting export-oriented industries.
Pushkar pointed out the incentives and facilities being extended to the foreign investors such as rebate of corporate rate of income tax (maximum ten years and up to 90 per cent rebate); deduction facility from income for worker's welfare, capacity enhancement, investment on pollution control, advertisement and market development; no imposition of excise duty and VAT on exports; refund of custom duties, excise duty and VAT on raw material on the export of the product (only 1 per cent custom duty on the industrial machinery). The other facilities include permission of subcontracting for manufacturing; commitment of the Government of Nepal to provide road, electricity connection and drinking water supply facilities to manufacturing industries where they are established; security of the foreign investments; and, no restrictions on the repatriation of proceeds of disinvestments and earnings.
Highlighting the importance of Indo-Nepal relationship, B Venkatesham, Secretary of Tourism, Government of Telangana, said that the economic cooperation can bring people of the two countries even closer. He added that the recently formed government in Nepal is engaged in the task of political and socio-economic transformation of the country through peaceful and democratic means to make it a stable, inclusive, full-fledged democratic and prosperous country. Venkatesham also highlighted that the Government of Telangana is interested in signing an MoU with the Nepal Tourism Board to promote India and Nepal as tourism destinations.
FICCI has been at the forefront in its engagement process with Nepal for strengthening bilateral economic relations. The apex industry chamber has been closely working with the relevant stakeholders be it from the government, the embassies, its MoU partners in Nepal – FNCCI and CNI or academia. It is FICCI's third engagement with Nepal this year, following the formation of a stable government in the country. Earlier, FICCI had hosted an interactive session with senior journalists from Nepal and had co-organized an India-Nepal Business Forum in honour of the Prime Minister of Nepal, KP Sharma Oli and the highpowered delegation visiting India.
The seminar also witnessed participation of Sanjay Kapur, Secretary General, Of the Federation of Telangana and Andhra Pradesh Chamber of Commerce and Industry (FTAPCCI); officials from Embassy of Nepal in New Delhi; and, representatives from the Indian industry.
Through sustainable economic development, Nepal is working towards political stability, peace building, trade facilitation and economic capacity building.
Krishna Hari Pushkar Minister – Economics, Embassy of Nepal
The recently formed government in Nepal is engaged in the task of political and socio-economic transformation of the country through peaceful and democratic means to make it a stable, inclusive, full-fledged democratic and prosperous country.
B Venkatesham Secretary of Tourism, Government of Telangana
Bharat Kumar Regmi, Charge d'Affaires, Embassy of Nepal, addressing the seminar.